CIRD80250 - R&D tax relief: comparison of the basic features of the two schemes
This is a simplified comparison of the two schemes.
SME scheme |
Large company scheme |
| 150% rate of enhanced deduction to 31 July 2008 and a 175% rate of enhanced deduction thereafter until 1 April 2011 when increased to 200% | 125% rate of enhanced deduction to 31 March 2008 and a 130% rate of enhanced deduction thereafter |
| Payable credit of up to £24 for every £100 of qualifying expenditure on R&D to 31 July 2008 and of up to £24.50 for every £100 thereafter until 1 April 2011 when increased to £25. | No payable credit |
| Company can claim for expenditure on R&D it sub-contracts to others | Company can only claim for expenditure on R&D it carries out itself, unless it sub-contracts R&D to certain qualifying bodies, individuals or partnerships of individuals |
| Company cannot claim for contributions to independent research | Company can claim for contributions to independent research |
| Claim can be reduced if the R&D project is subsidised or a grant is received in respect of it | No reduction for grant or subsidy |
| The condition requiring ownership of the intellectual property arising out of the R&D has been abolished for accounting periods ending on or after 9 December 2009. | Company need not own the intellectual property arising out of the R&D. |
Further guidance
For more detailed guidance follow the links at CIRD80300.
