Research and development tax relief
To help develop this article, click 'Edit this article' above.
It is designed to provide support to companies who invest in research and development (R&D), to help bring new products to market, to develop new processes, or to improve existing products or processes.
This article is aimed primarily at companies operating in the UK, there are similar schemes in many EU countries.
There are two schemes available to UK companies, an SME Scheme, aimed at Small to Medium Sized Companies and a Large Company Scheme for companies that do not meet the criteria of the SME Scheme.
To qualify for the SME Scheme the following criteria need to be met:
- The company (and its associated companies, subsidiaries, parent, JV) should employ less than 500 people and the company's (and its associated companies) should have a combined balance sheet less than €86m or a combined turnover less than €100m.
- The company must be performing the R&D for its own benefit and not be paid by someone else to perform the R&D for them.
- The company must not be in receipt of some other form of EU Notifiable State Aid associated with the project. EU Notifiable State Aid includes funding from some Local Government Organisations, the Technology Strategy Board, and the Manufacturing Advisory Service.
Any company that does meet the criteria of the SME Scheme is eligible to claim under the Large Company Scheme.
 Related articles on Designing Buildings Wiki
Featured articles and news
What will the General Data Protection Regulations (GDPR) mean for you when they come into force in May?
Business Secretary chairs a new taskforce to monitor and advise on mitigating the impacts of Carillion’s liquidation.
Sir John Armitt is appointed the new chair of the National Infrastructure Commission.
High quality and high density homes - is it what we need or is it storing up trouble?
Government announces its intention to strengthen planning rules to protect music venues and neighbours.
National Audit Office reports that there is little evidence that PFI offers better value than other forms of contracting.
What is liquidation and how does it apply to contractors in the construction industry?
Scrutiny is placed on Carillion's controversial 2013 decision to extend subcontractor payment terms to 120 days.
RSHP unveil their involvement in a boundary crossing which will provide a new entry point into Hong Kong.
With PFI currently under the spotlight due to Carillion, this introductory article explains what they are.
Estimates suggest that up to 30,000 small firms could be at risk of non-payment as a result of Carillion's collapse.