Research and development (R&D) tax credits are a form of tax relief to incentivise UK companies to invest in innovation. They can reduce your tax bill or you can claim payable cash credits as a proportion of your R&D expenditure.

R&D for tax purposes takes place when a project seeks to achieve an advance in science or technology. The activities which directly contribute to achieving this advance in science or technology through the resolution of scientific or technological uncertainty are R&D. Note that it is not just the traditional industries such as life sciences that undertake qualifying R&D. R&D can be undertaken in almost any industry and the definition of R&D is deliberately wide ranging to ensure industries are not discriminated against.

Companies have seen some big changes lately; changes in corporation tax rates, changes back to the associated company rules from the 51% related companies, and lately, additional requirements to support R&D claims and changes to R&D rates.

Following the Spring 2023 Budget, claimant companies will need to consider the impact of R&D reforms announced last week. Change in relief rates from 1 April 2023 For profitable SMEs, the SME R&D relief rate is changing from 130% to 86%. For loss making SMEs, the repayable SME R&D credit is changing from 14.5% to 10%. For loss making R&D intensive SMEs, the ...

The government has launched a consultation on simplifying the UK's research and development (R&D) tax relief system, driving innovation and growing the economy. The consultation runs to 13 March 2023 and sets out proposals on how a single scheme could be designed and implemented. This would replace the two R&D tax relief schemes currently in place – the Research and D ...

New R&D legislation was published on 20 July 2022. Changes being introduced from 1 April 2023 will affect: companies claiming Research and Development Expenditure Credit (RDEC). small or medium enterprises (SME) R&D relief. companies that have made a Patent Box election. Whilst there are currently no major structural changes, the following are now confirmed: ...

The government conducted a review of (SME) R&D and RDEC relief following the 2021 Spring budget. The consultation explored the nature of private-sector R&D investment in the UK, how that is supported or otherwise impacted by the R&D relief schemes, how well they operated and how the targeting of reliefs worked to be most beneficial for the UK economy. At the 2021 ...