Policy paper

Research & Development (R&D) tax relief reforms

These measures combine the current Research and Development Expenditure Credit (RDEC) and R&D SME scheme into a merged scheme, implement the enhanced support for R&D intensive SMEs and restrict the use of nominations and assignments for R&D tax credit payments.

• From: HM Revenue & Customs
• Published: 22 November 2023
• Last updated: 23 November 2023
  Show all updates

  1. 23 November 2023

     The exchequer impact has been updated in 'Enhanced support for Research & Development (R&D) intensive small or medium enterprises (SMEs)' and 'Merger of current small or medium enterprise (SME) and Research and Development Expenditure Credit (RDEC) schemes'.

  2. 22 November 2023

     First published.

Documents

Merger of current small or medium enterprise (SME) and Research and Development Expenditure Credit (RDEC) schemes

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Enhanced support for Research & Development (R&D) intensive small or medium enterprises (SMEs)

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Restricting nominations and assignments for Research and Development (R&D) Relief

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Details

As announced at Autumn Statement 2023, the government will legislate in Autumn Finance Bill 2023 to:

• merge the current RDEC and R&D SME schemes for accounting periods beginning on or after 1 April 2024
• implement the enhanced support for R&D intensive SMEs that was announced at Spring Budget 2023, providing a higher rate of payable tax credit for eligible SMEs
• restrict the use of nominations and assignments for R&D tax credit payments