This guidance note provides information on what qualifies as research and development (R&D) tax relief for companies. The Research and development (R&D) relief ― overview guidance note provides an overview of the reliefs.
Research and development definition
The legislation defines research and development (R&D) as activities that fall to be treated as R&D in accordance with generally accepted accounting practice. The accounting definition is included in FRS 102 (or IAS 38 for international GAAP). This definition was modified by guidelines issued by the Secretary of State for Trade and Industry on 5 March 2004 (with updates made subsequently at various stages).
See Guidelines on the Meaning of Research and Development for Tax Purposes for the latest version. See also HMRC’s Guidelines for Compliance which expand on its view of the guidelines on the meaning of R&D for tax purposes and also how to identify qualifying R&D activities. Illustrative example of projects and qualifying activities are also provided.
FRS 102 defines ‘research’ as ‘original and planned investigation undertaken with the prospect of gaining new scientific
Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™
Access this article for free with a 7 day trial of Tolley+™ Guidance and benefit from:
- Expert practical tax guidance
- Ready-made templates, step-by-step-guides, interactive flowcharts and checklists
- The latest news updates, insights and analysis
Popular Articles
Substantial shareholding exemption ― overview
Substantial shareholding exemption ― overviewThe substantial shareholdings exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. No claim is required. Provided
Inter-spouse transfer
Inter-spouse transferIntroductionWhen a chargeable asset is transferred between two spouses or civil partners, there is a disposal by the transferor spouse / civil partner and an acquisition by the transferee spouse / civil partner for capital gains tax purposes. For simplicity, spouses and civil
Class 1 v Class 1A
Class 1 v Class 1AClass 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met
