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

HTML

Draft legislation

PDF, 99.3 KB, 7 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Explanatory note

PDF, 141 KB, 3 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

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

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

  3. First published.

Related content