Qualifying expenditure for R&D tax relief

Produced by Tolley in association with

Corporation Tax

Guidance

Introduction

This guidance note provides information on the types of expenditure incurred by companies which qualify for research and development (R&D) tax relief. The Research and development (R&D) relief ― overview guidance note provides an overview of the reliefs available.

See also Simon’s Taxes D1.409–D1.414.

R&D tax relief is only available for expenditure which meets certain conditions and that falls within certain types of qualifying expenditure. For accounting periods beginning on or after 1 April 2024, the conditions and types of expenditure are the same whether the company claims relief under the merged RDEC scheme or the SME intensive scheme. Previously, they were similar for both SME R&D relief and large company R&D relief with some exceptions which are detailed below.

Qualifying conditions and types of expenditure for R&D tax relief

Qualifying conditions for R&D tax relief

The R&D must be relevant R&D for the claimant company which means that it is related to a trade carried on by the company or the trade of the company will be derived from the R&D in

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Will Sweeney

Senior R&D Manager, Menzies LLP , Corporate Tax

Will Sweeney is a Senior R&D Manager in the Innovation & R&D team at Menzies where he looks after many of their largest clients. He has extensive experience of helping entrepreneurial clients to optimise their tax position throughout the innovation lifecycle by advising on issues including R&D tax credits, RDEC, Creative Sector reliefs and the Patent Box.In addition to his tax knowledge, Will started his career as an engineer and has worked with numerous technology, manufacturing and property sector clients. He brings a wealth of industry experience to his clients, helping him to understand the specific technical details of work undertaken by clients.Will contributes to TolleyGuidance Corporate module.

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