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:

  • project
  • advance in science or technology
  • science
  • 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.

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