research and development (R&D) capital allowances are available to all taxpayers carrying on a trade, not just companies. Therefore, an individual, or partnership of individuals, which cannot claim R&D tax relief, can still claim R&D capital allowances.

Where an item of expenditure could qualify for other capital allowances (such as plant and machinery allowances), the trader needs to choose which allowance to take. Only one form of capital allowances may be claimed on an item of capital expenditure.

Following the Finance Act 2014, R&D allowances are no longer affected by any restrictions imposed on a company under CTA 2010, Pt 14A following certain changes of company ownership (for a description of these rules, see Practice Note: Restrictions on the use of losses following company takeover—the deduction transfer TAAR).