R&D Tax Relief

Don’t imagine that Research and Development tax relief is only available for laboratory-type innovations.

Call us: 02035002646

Research & Development Tax Relief

Why aren’t you applying for this under-subscribed and generous tax relief if your business is contributing to the advance of science and technology? Don’t imagine that Research and Development tax relief is only available for laboratory-type innovations.

It can apply to business expenses where new technologies, materials, knowledge, and ideas are being used to surmount old challenges and tackle some new ones.

Research & Development – Capital Expenditure:

Enhanced capital allowances can be claimed for capital expenditure on research and development. Allowances are only due if the R&D is related to the trade of the business. The allowance is known as the Research & Development Allowance (RDA) and qualifying expenditure attracts capital allowances of 100%.

Research and Development Tax Relief

Stipulations to qualify for R&D Tax Relief

Method of Relief

From 1 April 2015 businesses can claim R&D tax relief of 230% incurred. For expenditure incurred between 1 April 2012 and 31 March 2015, companies could claim 225%. Prior to that, they could claim relief of 200%.

Normally R&D tax relief would be claimed by deducting from taxable profits in the company’s corporation tax accounts, an additional amount equal to 130%, 125%, or 100% of the R&D expenditure, depending on when it was incurred.

A relief at 230% of the expenditure gives businesses liable for the small profits rate of corporation tax at 20% (2016), 19% (2017), a tax saving equal to 46% of the R&D expenditure. That means every £100 you spend of research and development is equal to £33 of tax relief.

Companies that incurred R&D expenses before they started to trade can treat the R&D relief as a trading loss. Again, the rules have changed slightly recently, but here’s another example.

What can R&D include?

R&D according to HMRC is when a project, or a component of a larger project, seeks to achieve an advance in science or technology. This could include:
  • Software development
  • Designing new products
  • Precision engineering
  • Products using new materials
  • Enhancing existing products or technologies
What does R&D Include

What part of the process will R&D expenditures cover?

How it works with Us

Email us at  to find out how we can help you.

Book a Consultation

Fill out the form below to find out how we can help you.

    By clicking submit, you are agreeing to us collecting and storing your details in order that we can contact you to arrange a free consultation with us and to keep you informed about our latest products and services . Your details will be held and used in accordance with our privacy policy, a copy of which is available.     Click here to read policy.

    Our Achievements

    Software we use

    Xero Nomisma Sage Quickbooks
    Kashflow Taxcalc IRIS Absolute Accounting