Commentary

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:

  1.  

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

  2.  

    •     externally provided workers (see D1.409A)

  3.  

    •     software or consumable items (see D1.410)

  4.  

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

  5.  

    •     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)

  6.  

    •     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

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial