Companies eligible for R&D tax relief

Produced by a Tolley Corporation Tax expert

Corporation Tax

Guidance

This guidance note provides information on the conditions which must be met by a company for it to claim R&D tax relief. The Qualifying expenditure for R&D tax relief guidance note provides information on the types of expenditure which qualify for relief.

Conditions for the company for R&D relief

See Simon’s Taxes D1.402A.

The company must be within the charge to corporation tax. An overseas permanent establishment (PE) of a UK company can therefore qualify for relief if it is within the charge to corporation tax and is not the subject of a foreign branch exemption election. See the Foreign ‘branch’ exemption ― overview guidance note for more on the exemption. UK PEs of non-UK companies can also qualify.

A further key requirement is that the company must be a going concern, which means not only that the company’s last accounts cannot be qualified on a going concern basis, but also that the company

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