D1.409 Relevant R&D and staffing costs

Corporate tax
Corporate tax | Commentary

D1.409 Relevant R&D and staffing costs

Corporate tax | Commentary

Eligible expenditure for R&D tax relief

D1.409 Relevant R&D and staffing costs

Expenditure on qualifying R&D may qualify for R&D tax relief if it falls within the following categories1:


    •     staffing costs (see 'Staffing costs for R&D' below)


    •     externally provided workers (see D1.409A)


    •     software or consumable items (see D1.410)


    •     relevant payments to the subjects of clinical trials (see D1.412)


    •     for large companies only: contributions to independent research carried out by a qualifying body, an individual or a firm, each member of which is an individual (see D1.412)


    •     work subcontracted into and out of both SME and large companies subject to certain restrictions and conditions (see D1.414)

A review of eligible R&D costs and common misconceptions is covered in 'Identifying eligible research and development costs' in Taxation by Jenny Tragner on 17 May 2017.

Relevant R&D

For qualifying expenditure, there is an overall requirement for both the SME and large company regime that R&D must be relevant R&D for the company2.

The definition of relevant R&D matches the rules for allowable

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