HMRC internal manual

Corporate Intangibles Research and Development Manual

CIRD80250 - R&D tax relief: introduction: comparison of the basic features of the two schemes

This is a simplified comparison of the two schemes.

### SME scheme ### Large company scheme
   
An enhanced rate of deduction for qualifying expenditure on R&D incurred between the following dates: -  
1 April 2000 and 31 July 2008 - 150%; 1 August 2008 and 31 March 2011 - 175%; 1 April 2011 and 31 March 2012 - 200%; 1 April 2012 and 31 March 2015 - 225%; 1 April 2015 - 230% 125% rate of enhanced deduction to 31 March 2008 and a 130% rate of enhanced deduction thereafter
  For each £100 of qualifying expenditure on R&D incurred between the following dates, a payable credit of up to: -
1 April 2000 and 31 July 2008 - £24; 1 August 2008 and 31 March 2011 - £24.50; 1 April 2011 to 31 March 2012 - £25; 1 April 2012 to 31 March 2014 - £24.75; 1 April 2014 to 31 March 2015 - £32.63; 1 April 2015 to date - £33.35 No payable credit  
  Company can claim for expenditure on R&D it sub-contracts to others Company can only claim for expenditure on R&D it carries out itself, unless it sub-contracts R&D to certain qualifying bodies, individuals or partnerships of individuals
  Company cannot claim for contributions to independent research Company can claim for contributions to independent research
  Claim can be reduced if the R&D project is subsidised or a grant is received in respect of it No reduction for grant or subsidy
  The condition requiring ownership of the intellectual property arising out of the R&D has been abolished for accounting periods ending on or after 9 December 2009.  
Company need not own the intellectual property arising out of the R&D.

Further guidance

For more detailed guidance follow the links at CIRD80300.