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Research and Development Tax Reliefs

Author: Maria Kitt

Edition: Fourth

Publication Date: May 2022

Publisher: Bloomsbury Publishing Plc

Law As Stated At: 24 February 2022

Research and Development Tax Reliefs

Research and Development Tax Reliefs

UK R&D tax reliefs are among the most effective and generous tax allowances in the world. Yet many companies, entitled to the incentive, do not claim reliefs that are due, either through a lack of awareness or because the reliefs seem complex or inappropriate to their business. But the significant increases in the value of the incentive make the R&D tax relief even more important. At the same time, the growth in HMRC powers and penalty-based tax regime highlight the importance of accurately documented claims.

This commentary is up-to-date as of Finance Act 2022 and draws together the many strands of legislation and other requirements that should be noted when making a competent claim into a single reference point.

Research and Development Tax Reliefs has been updated to include:

  • Coverage of key reforms to the SME scheme (4.38)
  • Discussion of proposed key changes to subcontracting costs to encourage innovation within the UK (4.3)
  • Updated to cover the extended definition of costs eligible for R&D - now to include the costs of cloud computing & data set costs (4.46)
  • Coverage of changes to be made to the administration of claims and linked CT600 returns to improve compliance and close areas of risk (6.27)
  • New case summaries including HMRC V Quinn London Ltd concerning SME ‘subcontracting’ reliefs (6.41)