Commentary

D1.403A Guidelines on R&D definition

Corporate tax
Corporate tax | Commentary

D1.403A Guidelines on R&D definition

Corporate tax | Commentary

D1.403A Guidelines on R&D definition

The starting point for the definition of R&D are activities that fall to be treated as R&D in accordance with GAAP (see D1.403) and then this is subject to further Treasury regulations1. The regulations are in the form of guidelines titled 'Guidelines on the Meaning of Research and Development for Tax Purposes' issued by the Secretary of State for Trade and Industry on 28 July 2000 and rewritten in 2004. These guidelines were referred to as the DTI guidelines as they were originally issued by the Department for Trade and Industry, with the change in name of that department they have subsequently been known as the BIS or BEIS guidelines. In this article they are referred to as the BEIS guidelines. The full official version can be found at BEIS Guidelines on meaning of R&D and they are reproduced in full below at 'Full text of BEIS guidelines on definition of R&D'.

Summary of key points on BEIS guidelines

The BEIS guidelines provide a definition of R&D for a variety of tax purposes including capital allowances on R&D expenditure (see B3.702). If expenditure on an activity qualifies as being R&D within the guidelines it still needs to meet the conditions for the SME or RDEC schemes to qualify for tax relief (see D1.420 and D1.435A).

Under the guidelines R&D takes place when a project seeks to achieve an advance in science or technology and the activities which directly contribute to achieving this advance, by resolving scientific or

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