Blog: Tax Talk – State Aid and Deminimis Aid

Date: July 11, 2018

By Nigel Holmes, Senior Tax Specialist at Catax

There are currently two types of R&D tax relief for qualifying revenue expenditure – Research & Development Expenditure Credit (RDEC) for large companies and the SME scheme (the definition of SME will be a future topic for Tax Talk).

There is a common misconception that a company in receipt of a grant or subsidy cannot receive R&D tax relief. This is simply not true. The rules are as follows:

For SMEs, the rules are more complex.

Some tips:

To conclude, grants and tax relief should not be viewed as either/or but should be looked at in the round to help companies minimise their costs of being innovative.

If you have any questions or queries, contact us on 0300 303 1903 or email enquiries@catax-prod.local

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