A company's tax relief claims for research and development expenditure were allowed, as it was a ‘small or medium-sized enterprise’ as defined for relief purposes.
The appellant company (P) claimed tax relief (under CTA 2009, Pt 13, Chs 2-4) as a ‘small or medium-sized company’ (SME) for expenditure on research and development (R&D) in 2010 and 2012. During those years, a substantial shareholding (between 25% and 50%) in the appellant was owned by another company (STA).
The First-tier Tribunal (FTT) had to determine whether STA was a ‘venture capital company’. In addition, a question arose as to the economic and financial independence between the appellant and a group of companies.
An SME for R&D purposes (in CTA 2009, s 1119) is broadly a micro, small or medium-sized enterprise as defined in Commission Recommendation (EC) No 2003/361. This refers to ;
