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HMRC internal manual

Corporate Intangibles Research and Development Manual

From
HM Revenue & Customs
Updated
, see all updates

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
   
150% rate of enhanced deduction to 31 July 2008 and a 175% rate of enhanced deduction thereafter until 1 April 2011 when increased to 200% 125% rate of enhanced deduction to 31 March 2008 and a 130% rate of enhanced deduction thereafter
Payable credit of up to £24 for every £100 of qualifying expenditure on R&D to 31 July 2008 and of up to £24.50 for every £100 thereafter until 1 April 2011 when increased to £25). 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.