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D1.420 R&D tax relief for SMEs before April 2024

This article covers the relief available to SMEs for accounting periods beginning before 1 April 2024. For accounting periods beginning on or after 1 April 2024, relief for R&D expenditure is available to SMEs under the merged RDEC scheme; see D1.417. SMEs which are loss-making and meet an R&D intensity condition can as an atlernative claim the R&D reliefs at D1.419 for accounting periods beginning on or after 1 April 2024. Those reliefs are broadly similar to the reliefs in this article.

For accounting periods beginning before 1 April 2024¹, where the company is an SME it may claim either:

1. Ìý

   •ÌýÌýÌýÌý an enhanced revenue deduction of an additional 86% on qualifying R&D for the accounting period (see below) (130% for expenditure incurred between 1 April 2015 and 31 March 2023)²

2. Ìý

   •ÌýÌýÌýÌý a tax credit in respect of its surrenderable loss with a cash payment of 10% (14.5% between 1 April 2014 and 31 March 2023) of