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Research and Development (R&D) Corporation Tax Relief Claims

Research and Development (R&D) Relief is a Corporation Tax relief that may reduce your company or organisation's tax bill.

Alternatively, if your company or organisation is small or medium-sized, you may be able to choose to receive a tax credit instead, by way of a cash sum paid by HM Revenue & Customs (HMRC)

The Small and Medium-sized Enterprise Scheme

This scheme has higher rates of relief. From 1 April 2011, the tax relief on allowable R&D costs is 200 per cent - that is, for each £100 of qualifying costs, your company or organisation could have the income on which Corporation Tax is paid reduced by an additional £100 on top of the £100 spent. It also includes a payable credit in some circumstances. Subject to Parliamentary approval, the rate will increase further to 225 per cent from 1 April 2012.

If your company is small or medium-sized, then you can only get paid tax credit if your company is a going concern. This means its latest published accounts were prepared on a going concern basis, and nothing in the accounts suggests that its status (as a going concern) depends on it receiving R&D Relief or tax credits. If your company or organisation ceases to be a going concern after making a claim but before any credit is paid, HMRC treats the claim as if it has not been made and you can't get tax credit.