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Find out if you can claim Corporation Tax relief on your Research and Development (R&D) project.
R&D reliefs support companies that work on innovative projects in science and technology. It can be claimed by a range of companies that seek to research or develop an advance in their field. It can even be claimed on unsuccessful projects. You may be able to claim Corporation Tax relief if your project meets our definition of R&D.
The work that qualifies for R&D relief must be part of a specific project to make an advance in science or technology. It cannot be an advance within a social science like economics or a theoretical field like pure maths.
The project must relate to your company’s trade – either an existing one, or one that you intend to start up based on the results of the R&D.
To get R&D relief you need to explain how a project:
Your project may research or develop a new process, product or service or improve on an existing one.
Your project must aim to create an advance in the overall field, not just for your business. This means an advance cannot just be an existing technology that has been used for the first time in your sector. The process, product or service can still be an advance if it’s been developed by another company but is not publicly known or available.
A scientific or technological uncertainty exists when an expert on the subject cannot say if something is technologically possible or how it can be done – even after referring to all available evidence. This means that your company or experts in the field cannot already know about the advance or the way you achieved it.
You should show that the R&D needed research, testing, and analysis to develop it. You need to be able to explain the work you did to overcome the uncertainty. This can be a simple description of the successes and failures you had during the project.
You should explain why a professional could not easily work out your advance. You can do this by showing that other attempts to find a solution had failed. You can also show that the people working on your project are professionals in that field and get them to explain the uncertainties involved.
There are different types of R&D relief depending on the size of your company and whether the project has been subcontracted to you or not.
You can claim SME R&D relief if you’re an SME with:
You may need to include linked companies and partnerships when you work out if you’re an SME.
SME R&D relief allows companies to:
This replaces the relief previously available under the large company scheme.