CIRD81100 - R&D tax relief: conditions to be satisfied: overview

In order for R&D tax relief to be due there are qualifying conditions set out in the legislation.

Only a company ( CIRD81200) can be entitled to the relief. The company must have incurred expenditure on R&D ( CIRD81300) that is relevant to their trade ( CIRD81400).

The expenditure must not be capital expenditure ( CIRD81700). In addition to having been incurred the expenditure must also be allowable as a deduction in computing the profit of the period ( CIRD81450) and must be on the categories of qualifying expenditure ( CIRD81500).

There is a minimum amount of expenditure below which relief is not available ( CIRD81600).

The company must also make a valid claim to the relief ( CIRD81800).

Further conditions that apply only to the SME scheme

Intellectual property rights resulting from the R&D must vest in the company ( CIRD81550). The company must not have been contracted to carry out the R&D ( CIRD81470).

The company must not have received a notified state aid for the R&D project ( CIRD81670) and the expenditure must not have been subsidised ( CIRD81650).