Tax Research and Development


Overview

Companies liable for UK corporation tax that are undertaking qualifying activities in science or technology may be entitled to tax incentives to support the undertaking of their Research and Development projects.
There are three UK R&D Tax Credits regimes that companies can claim under. Which regime (or combination of regimes) will be claimed depends upon the size, revenue and assets of the company as well as the nature and accounting treatment of the R&D costs.

Three Tax Regimes

  • SME (Small and Medium Enterprises) Regime: Available to companies who meet the SME size requirements, the SME regime is generally the most rewarding of the three regimes. As well as meeting the size requirements, qualifying companies also need to be undertaking R&D projects that are revenue in nature for tax purposes.
  • RDEC (Research and Development Expenditure Credit) Regime: The RDEC regime is for large companies that are undertaking R&D that is revenue in nature. RDEC provides an 11% 'above the line' credit.
  • RDA (Research and Development Allowances) Regime: The RDA regime is for either SME or Large companies that are undertaking R&D projects that are capital in nature for tax purposes.

How to Make a Claim

RD Relief is a cloud-based platform, enabling UK companies to prepare their R&D Tax Credit claims online.
The tailored workflows ask simple questions and only present information relevant to your claim - simplifying and speeding up the claim process.

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