Reliefs

The main reliefs from corporation tax are:

  •  Film relief. This gives an investee company a film corporation tax credit equal to 32% of the lower of
  • the eligible expenditure
  • 80% of the total production cost, and
  • €70m.
    Subject to EU approval under State aid guidelines, the 32% will be uplifted in certain regional areas to 37% (years 1 and 2), 35% in year 3, and 34% in year 4.
  • Charges, i.e., interest, annual payments and royalty payments (s 243).
  • Interest on money borrowed to invest in another company (s 247), but such relief is denied in the case of lending between connected companies if there is a mismatch between interest lent and claimed.
  • Investment in renewable energy (s 486B).
  • Expenditure on research and development – this amounts to a 25% tax credit against corporation tax liability and can lead to a repayment of up to 33% of unused tax credit not fully used in the first accounting period (s 766).

 

Download