A guide to Research and Development (R & D)

R & D is a Corporation Tax (CT) tax relief that may reduce your company’s tax bill, or, in some circumstances, you may receive a payable tax credit.

It applies to small and medium-sized companies (SME). To qualify as an SME the following conditions must apply:


What is R & D Relief:

For tax purposes, R & D takes place when a project seeks to achieve an advance in overall knowledge or capability in a field of science or technology.

There are two schemes available:


What qualifies as R & D

Work that advances overall knowledge or capability in a field of science or technology, and projects and activities that help resolve scientific or technological uncertainties, may qualify for R &D relief.

This can include creating new processes, products or services, making appreciable improvements to existing ones, and even using science and technology to duplicate existing processes, products and services in a new way. But pure product development in itself does not qualify.

Examples include software development, engineering design, new construction techniques, bio-energy, cleantech, agri-food and life and health sciences.


What costs qualify

What costs do not qualify


How to claim R & D tax relief

R & D relief is claimed via the Company Tax Return Form, CT600.


More detailed guidance can be found on the HMRC website here:


If you need any advice or you feel that you may be eligible for R & D relief then please get in touch and we can help you with your claim.