Policy paper

Preventing abuse of Research and Development tax relief for small and medium-sized enterprises

This measure introduces a limit to prevent the abuse of Research and Development (R&D) tax relief for SMEs.

• From: HM Revenue & Customs
• Published: 12 November 2020
• Last updated: 4 March 2021 — See all updates

Documents

Preventing abuse of Research and Development tax relief for small and medium-sized enterprises

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Draft legislation

PDF, 99.3 KB, 7 pages

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Explanatory note

PDF, 141 KB, 3 pages

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Details

The amount of payable small or medium sized enterprise (SME) R&D tax credit which a company can claim in a period will be limited to £20,000 plus 300% of its total PAYE and National Insurance contributions liability for the period.

Read the Preventing abuse of the R&D tax relief for SMEs consultation and summary of responses.

Published 12 November 2020

Last updated 4 March 2021 + show all updates

1. 4 March 2021

   This guidance has been updated to remove the straddling period from the operative date, the exchequer impacts have also been updated.

2. 25 November 2020

   Guidance has been updated where a company has an accounting period beginning before 1 April 2021.

3. 12 November 2020

   First published.