Recognising Research & Development

Identify Reseach and Development project for tax relief

Research and Development (R&D) Relief / Credits is a Corporation Tax relief that can reduce your company‚Äôs tax bill by more than the actual expenditure on allowable R&D costs. To qualify as eligible Research and Development expenditure, any activity must meet the definitions set out by the Department for Business, Innovation and Skills (BIS) *.

Which R&D projects might qualify for tax relief?

Your company can only claim for R&D Tax Relief if a project seeks to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty - and not simply an advance in its own state of knowledge or capability. Furthermore, for accounting periods ending before 9 December 2009, the project must satisfy both of the following conditions:

  • it must be related to your company or organisation's trade - either an existing one, or one that you intend to start up based on the results of the R&D
  • if your company or organisation is claiming relief under the SME Scheme (see below), it must own any intellectual property that might arise from the project

For accounting periods ending on or after 9 December 2009, only the first condition applies.

* Department of Business, Innovation & Skills