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Home / Simons-Taxes /Business tax /Part B3 Capital allowances /Division B3.7 Research and development /Research and development capital allowances / B3.701 Research and development allowances—overview
Commentary

B3.701 Research and development allowances—overview

Business tax

For updates affecting this Division please see Part B0 Updates

Research and development capital allowances

B3.701 Research and development allowances—overview

Research and development (R&D) allowances provide one of a number of reliefs which are available to traders who carry out research and development. In particular, the allowances give relief for expenditure of a capital nature, whereas the other reliefs are for revenue expenditure. See the table below for the other reliefs and where to find commentary.

An R&D allowance can be claimed by a trader who incurs qualifying expenditure of a capital nature (see B3.703) on research and development (R&D) (see B3.702). The allowance is equal to 100% of that expenditure1. This is not described in the legislation as a first-year allowance and is referred to

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