Research and Development Tax Relief

Research and Development Tax Relief

Since the launch of the R&D tax credit scheme in 2000, over 240,000 claims have been made and £21.4 billion in tax relief claimed.

If your company carries out research and development then you may be eligible for R&D tax credits, which can reduce your tax bill or increase taxable losses. If your company makes a loss on qualifying R&D expenditure, you can choose to ‘surrender’ or ‘cash-in’ losses that derive from an HMRC claim.

You must be able to demonstrate to HMRC that the product or service you’re planning to include in your claim is truly innovative and, at a technological level, an advance on what’s currently available in the market.

For eligible projects, ‘costs’ are the money spent on salaries, externally provided workers, subcontractors, software, utilities and materials ‘consumed or transformed’, such as such as chemicals, materials, batteries and certain forms of tooling. Prototyping and independent research costs may also qualify for R&D relief.

ABGI UK provides a comprehensive, end-to-end service – not only for R&D tax relief, but across all innovation funding incentives. Contact us below.


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