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D1.419 Alternative regime for loss-making R&D-intensive SMEs from April 2024

This article covers the relief available to loss-making R&D-intensive SMEs for accounting periods beginning on or after 1 April 2024. For the relief for SMEs for accounting periods beginning before 1 April 2024, see D1.420.

For accounting periods beginning on or after 1 April 2024¹, SMEs which invest heavily in R&D and do not make associated trading profits may, instead of claiming relief under the merged RDEC scheme (see D1.417), claim:

1. Ìý

   •ÌýÌýÌýÌý an enhanced revenue deduction of an additional 86% on qualifying R&D expenditure for the accounting period (see below under 'Enhanced R&D revenue deduction')

2. Ìý

   •ÌýÌýÌýÌý an enhanced deemed trading loss of 186% of qualifying R&D expenditure where the company is not yet trading (see below under 'Deemed loss for pre-trading expenditure')

3. Ìý

   •ÌýÌýÌýÌý a tax credit in respect of its surrenderable loss with a cash payment of 14.5% of the surrenderable loss (see below under 'R&D tax credit')

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