Research & Development

Research and Development (R&D) tax relief is awarded to businesses that invest in innovation. This innovation can be in the form of developing new systems, processes, products, materials, devices, or any changes to the way your business works.

This tax relief is the government’s way of rewarding businesses that are investing in innovation by developing new, or improving existing products, processes, services, devices and materials or advancing the state of knowledge in their sector.

The relevant legislation is located in The Corporation Tax Act 2009. Guidance on the meaning of R&D is found in the BEIS Guidelines on the Meaning of Research and Development for Tax Purposes.

Making an R&D claim

R&D tax relief can only be claimed two years from the end of your accounting period. This means that once your business enters a new tax year, you are no longer eligible to claim for any projects that took place more than two years previously.