Research & development (R&D) tax relief is only available for expenditure which meets certain conditions and that falls within certain types of qualifying expenditure. The conditions and types of expenditure are similar for both SME R&D relief and large company R&D relief with some exceptions which are detailed below.

CTA 2009, ss 104J, 104L, 1052

Qualifying and expenditure for R&D tax relief

Qualifying conditions for R&D tax relief

Certain conditions have to be met in relation to the expenditure, it must be:

  • revenue not capital in nature, although capital allowance may be available, see Research and development allowances (CTA 2009, s 1052)
  • related to a trade carried on or to be carried on by the company, the relief is a corporation tax relief and so is not available to unincorporated businesses
  • allowable as a deduction in calculating the profits of the trade for the purposes of corporation tax

Qualifying types of expenditure for R&D tax relief

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