Tax Relief on Research and Development (R&D)
Research & Development (R&D) relief is available for companies that undertake qualifying R&D activities.
R&D is defined by reference to DTI Guidelines.
Broadly, these guidelines provide that a project which seeks to, for example,
- extend overall knowledge or capability in a field of science or technology; or
- create a process, material, device, product or service which incorporates or represents an increase in overall knowledge or capability in a field of science or technology; or
- make an appreciable improvement to an existing process, material, device, product or service through scientific or technological changes; or
- use science or technology to duplicate the effect of an existing process, material, device, product or service in a new or appreciably improved way (e.g. a product which has exactly the same performance characteristics as existing models, but is built in a fundamentally different manner) will be R&D for tax purposes provided that the project seeks to achieve an advance in overall knowledge or capability in a field of science or technology.
The detailed criteria requirements can be accessed using the following link. For a brief summary of the reliefs available please click on the following PDF.
