Research and development (R&D) relief ― overview

Produced by Tolley in association with

Corporation Tax

Guidance

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.

Types of R&D tax relief

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

•
for a trading company, revenue expenses are allowable as a deduction against the profits of the trade, and capital expenditure may be eligible for a 100% R&D allowance as detailed in R&D allowances in the Research and development tax relief ― capital expenditure guidance note
•
in addition, qualifying expenditure on R&D is eligible for additional R&D tax relief. Significant changes have been made to the relief available with effect for accounting periods beginning on or after 1 April 2024. There continue to be two different types of relief:

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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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