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Summary of R&D tax relief

D1.401 Research and development (R&D) tax relief—overview

Qualifying expenditure on research and development is relieved as follows:

1. Ìý

   •ÌýÌýÌýÌý for a trading business including a trading company, expenditure that is revenue in nature is deducted in the ordinary way in computing the profit or loss from that trade. For this purpose, R&D includes oil and gas exploration and appraisal¹. Further details on the ordinary trading deduction are covered in B2.467

2. Ìý

   •ÌýÌýÌýÌý for a trading business including a trading company, expenditure that is capital in nature is eligible for a 100% R&D allowance². Further details on the R&D allowance are covered in Division B3.7

3. Ìý

   •ÌýÌýÌýÌý in addition to the above, for corporates only, ie a body corporate or unincorporated association, but not including a partnership, a co-ownership scheme, a local authority or local authority association³, expenditure on qualifying R&D may be eligible for additional reliefs.

This division details these additional reliefs for companies. The division is