06 Aug TAX PLANNING
Your company can only claim for R&D tax relief if an R&D project seeks to achieve an advance in overall knowledge or capability in a field of science or technology through the resolution of scientific or technological uncertainty – and not simply an advance in its own state of knowledge or capability.
The project must relate to your company’s trade – either an existing one, or one that you intend to start up based on the results of the R&D.
If your company or organisation is claiming tax relief under the SME scheme it must own any intellectual property that might arise from the project.
How to show the project is R&D within the tax definition
There are guidelines that define the following terms. These will help you decide if your company has an R&D project for tax purposes:
- advance in science or technology
- directly contribute
- scientific or technological uncertainty
Give an explanation of each of the following, when filing your CT Return, to show that the definition of R&D applies to your project or projects.