ABSTRACT
Research and Development (R&D) tax relief, or credit, is a Corporation Tax benefit that can either reduce a company’s tax bill or, in some circumstances, provide a cash sum. The tax credits consist of additional tax relief beyond the amount of the expenditure incurred on qualifying R&D activities and are given against Corporation Tax. R&D is defined in section 1138 of the Corporation Tax Act 2010 as ‘activities that fall to be treated as research and development in accordance with generally accepted accounting practice’. An advance in science or technology means an advance in overall knowledge or capability in a field of science or technology. Scientific or technological uncertainty exists when knowledge of whether something is scientifically possible or technologically feasible, or how to achieve it in practice, is not readily available or deducible by a competent professional working in the field.
