Activities which constitute R&D for tax purposes are those activities within R&D projects which are accounted for as R&D under generally accepted accounting practice (see D1.403) and fall within the guidelines issued by the Department for Business, Energy and Industrial Strategy (BEIS) (see D1.403A). Under these BEIS guidelines, R&D takes place when a project seeks to achieve an advance in science or technology and the activities which directly contribute to achieving this advance, by resolving scientific or technological uncertainty, are R&D activities. Certain qualifying indirect activities can also qualify as R&D.
Activities which directly contribute to R&D include1:
• activities to create or adapt software, materials or equipment needed to resolve the scientific or technological uncertainty, provided that the software, material or equipment is created or adapted solely
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