D1.435A RDEC for large companies and SMEs before April 2024
This article covers the RDEC scheme as it applies for accounting periods beginning before 1 April 20241. For the RDEC scheme that applies for accounting periods beginning on or after 1 April 2024, see D1.417.
R&D large company tax relief
For accounting periods beginning before 1 April 2024, a large company may claim a taxable R&D expenditure credit (RDEC) (sometimes called an above the line credit, as it is taxable)2 for qualifying expenditure.
The credit is calculated directly as 20% of qualifying R&D expenditure for the period (13% for expenditure incurred prior to 1 April 2023, 12% for expenditure incurred prior to 1 April 2020, 11% for expenditure incurred prior to 1 January 2018)3. RDEC is not available to companies that are charities, institutions of higher education or any company as described by Treasury regulations4.
The payable credit is paid at a higher headline rate of 49% to companies in the oil and gas ring-fence.
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Web page updated on 17 Mar 2025 17:28