R&D tax relief administration, interaction with other reliefs and anti-avoidance

Produced by Tolley

The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • R&D tax relief administration, interaction with other reliefs and anti-avoidance
  • Claims for R&D tax relief
  • CTSA supplementary page CT600L
  • Advanced R&D assurance for small companies
  • R&D anti-avoidance
  • R&D: interaction with quarterly payments
  • R&D: interaction with the patent box regime
  • R&D: interaction with creative sector tax reliefs

R&D tax relief administration, interaction with other reliefs and anti-avoidance

The following paragraphs set out details of the administration of R&D claims, the interaction with other tax provisions and anti-avoidance rules. For further details of SME R&D tax relief, see the Research and development SME tax reliefs guidance note and for details of research and development expenditure credit (RDEC) see the Research and development expenditure credit (RDEC) guidance note.

For information on the operation of the R&D regime and the processing of claims in light of the coronavirus (COVID-19) pandemic, see the Calculating trading profits after coronavirus (COVID-19) guidance note.

Claims for R&D tax relief

Claims for R&D tax relief must be made by including the claim in the company’s tax return (CT600) either in the original submitted return or through an amended return. The time limit for submission of the claim is the first anniversary of the filing date for the company’s tax return for the accounting period for which the claim is being made. For example, if the accounting period was the year to 31 December 2020, a claim would need to be submitted to HMRC by 31 December 2022.

Claims can be supported by a simple report as a pdf attachment to the return or via HMRC’s online template. The online template is intended to provide a standardised format in which claims can be supported. It is not dissimilar in concept to the more familiar personal tax return format. There are two sections that must be completed. The first section requires that the following set of questions be answered:

  1. what was the scientific or technical knowledge at the start of the project?

  2. what was the gap in technological knowledge or capability that the project aimed to overcome?

  3. what types of scientific or technological uncertainties did the company face in achieving the desired advance?

  4. how did your project overcome the technological uncertainties?

The second section covers the relevant cost information. The R&D costs have to be provid

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