CIRD112310 - R&D Tax Reliefs: reformed reliefs: new RDEC: expenditure incurred before scheme began
New RDEC applies to accounting periods beginning on or after 1 April 2024. Qualifying Chapter 1A expenditure will generally be eligible for relief in the accounting period in which it receives a tax deduction, even if it was incurred in a previous accounting period before the introduction of new RDEC. Please note that expenditure must be qualifying Chapter 1A expenditure under CTA09/Chapter 1A as it has effect for the accounting period in which the claim is made, regardless of when the expenditure was incurred.
The appropriate rate of the relief is given by CTA09/S1042G and applies to all expenditure which is an allowable deduction in the period and is qualifying expenditure under CTA09/Chapter 1A.
This is different from the treatment which applied to old RDEC and applies to ERIS. This is because new RDEC was introduced by an entirely new Chapter which included the applicable rate and applies to accounting periods beginning on or after 1 April 2024, see FA24/Sch1/Para 5 and Para16. The old RDEC scheme was abolished with effect for accounting periods beginning on or after 1 April 2024 and claims under that scheme cannot be made in those periods, see FA24/Sch1/Para 2 and Para 16.