A number of new and uprated tax reliefs for business were announced in the Budget, including the extension of above the line R&D tax reliefs.

Osborne confirmed that 'the above the line credit will be increased to 10% from 1 April 2013'.

The above the line (ABL) R&D tax credit, for large company R&D expenditure incurred on or after 1 April 2013, first announced in 2011, has been extended with the introduce an ATL credit.

The ATL credit is designed to make R&D relief more visible to those making investment decisions and improve cashflow to companies with no corporation tax liability, according to the Red Book, although some question whether it impacts any but the largest sector of the business market.The new measure increases the ATL credit to a rate of 10% before tax. Companies with no corporation tax liability will be able to claim a payable credit. The ATL credit will be introduced alongside the existing super-deduction in April 2013, and will fully replace the super-deduction in April 2016.

The estimated cost of the measure is £80m in 2014/15, up from £20m in 2013/14.

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