The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Research and development definition
CTA 2010, s 1138
See Guidelines on the Meaning of Research and Development for Tax Purposes.
FRS 102 defines ‘research’ as ‘original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding’. ‘Development activity’ is defined as ‘the application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services before the start of commercial production or use’. FRS 102 also distinguishes research activity from development activity by the test of whether or not an entity can demonstrate that an intangible asset exists that will generate probable future economic benefits (section 18.8E). IAS 38 takes a similar approach in defining the activities a
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