Research and analysis

Evaluation of the research and development tax relief for small and medium-sized enterprises

This report evaluates the direct and indirect impacts of the research and development tax relief for small and medium-sized enterprises.

• From: HM Revenue & Customs
• Published: 17 November 2020

Documents

Evaluation of the research and development tax relief for SMEs

Ref: HMRC Research Report 598

PDF, 3.51 MB, 117 pages

Details

The objectives of this evaluation of the research and development (R&D) tax relief for small and medium-sized enterprises (SMEs) were to assess:

• the direct impact of the scheme on R&D expenditure
• the indirect impacts of the scheme on turnover, innovative behaviour, and market competition
• the extent to which the rates of the relief are proportional, and the extent to which a tax relief is the most appropriate form of support

The evaluation consists of descriptive statistics, econometric analyses, and social research among claimants and non-claimants of the relief.

Published 17 November 2020