Private equity companies may qualify for a number of reliefs designed to reward innovation.
Companies carrying out qualifying R&D may be eligible for a 11% credit to increase EBITDA, which has a cash value of c.9% for companies, even where the company has no tax liability (subject to certain conditions).
The Patent Box regime provides an effective 10% rate of Corporation Tax for profits arising from patented technology.
The Creative Sector reliefs allow either a ‘super’ additional deduction or a tax credit for qualifying expenditure on film production, video games, animation, high end TV programmes, children’s TV programmes, theatre production, orchestras and museum and gallery exhibitions.
