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Research and development (R&D) relief ― overview


Produced by Tolley in association with
Corporation Tax
Guidance

Research and development (R&D) relief ― overview


Produced by Tolley in association with
Corporation Tax
Guidance
imgtext

This guidance note provides an overview of the research and development (R&D) tax reliefs for companies.

See the Research and development tax relief summary diagram which summarises the R&D tax relief.

See also Simon’s Taxes D1.401.

For a factsheet which summarises the R&D tax regime and which can be tailored for an advisor’s branded headings, see the Client factsheet ― research and development relief.

Types of R&D tax relief

Expenditure by a company on R&D can be relieved in the following ways:

  1. •

    revenue expenditure is, for a trading company, allowable as a deduction against the profits of the trade

  2. •

    capital expenditure may be eligible for a 100% R&D allowance (see the Research and development tax relief ― capital expenditure guidance note), and

  3. •

    “qualifying expenditure” on R&D is eligible for additional R&D tax relief.

A number of significant changes were made to the R&D relief for accounting periods beginning on or after 1 April 2024. See below under ‘Reforms to R&D reliefs from April 2024’ for a summary

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Will Sweeney
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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