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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