E3.267 Definition of a knowledge intensive company (KIC)
Knowledge intensive companies enjoy some advantages in terms of raising risk finance (see E3.255) and number of employees (see E3.254). The definition of such companies is based on criteria concerning the percentage of costs represented by research and development, the creation of intellectual property as a basis for future business activity, and the percentage of skilled employees on the payroll1.
In order to be a KIC a company must meet2:
- Ìý
•ÌýÌýÌýÌý one or both of the operating costs conditions
- Ìý
•ÌýÌýÌýÌý one or both of the:
- Ìý
–ÌýÌýÌýÌý innovation condition, and
- Ìý
–ÌýÌýÌýÌý skilled employee condition
The Treasury may add to, amend or remove conditions by regulations3.
Operating costs conditions
There are two operating costs conditions4. One or both of these must be satisfied. Both are tested over the three year period (the relevant three preceding years) ending immediately before the beginning of the last accounts filing period for the issuing
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 13:57