Understanding the definition of R&D is key to making a valid claim for tax relief. We explain the basics in a new video.
For many companies, the tax relief available for qualifying research and development (R&D) spending is a welcome means of funding new innovations. For the government, it is an investment in future growth.
So how do you know if you qualify? The first step is to consider if the activities are recognised as R&D under generally accepted accounting practice and meet the definition of R&D in the government’s guidelines (ie, where a company seeks to make an ‘advance’ in science or technology).
This is covered in our new video – the first in a series that aims to give an easily digested description of different aspects of tax that can be readily understood by anyone who is not an expert in that particular field.
We will be adding to the collection in the coming weeks and months, to build up a resource to be used by all accountants. If there is a topic you’d like to see covered, please email stephen.relf@icaew.com
Further reading
- TAXguide 07/24: Tax treatment of travel costs for directors of VC portfolio companies
- TAXguide 06/24: Taxation of cars, vans and fuel Q&As
- TAXguide 05/24: Payroll and reward update webinar Q&As
- TAXguide 04/24: The cash basis for trades: Q&As
- TAXguide 03/24: Payroll rates, allowances and thresholds in 2024/25
