R&D tax relief: conditions to be satisfied: claims and time limits
CTA09/Ss 1044(6), 1063(5), 1068(6), 1074(5)
R&D tax reliefs are not a mandatory adjustment to the profit of an accounting period. A claim must be made for the extra deduction.
Claims for accounting periods ending on or after 31 March 2006
FA06/S29 aligned the time limit for claims for the enhanced deduction (for both large companies and SMEs) with the time limit for claims for payable tax credits. The new time limit is the first anniversary of the filing date for the company tax return of the claimant company for the accounting period for which the claim is made. A claim for the enhanced deduction must be made in the claimant company’s return or amended return, and must specify the amount of relief claimed. A company’s claim may be amended or withdrawn only by amending the relevant company tax return.
Claims for accounting periods ending before 31 March 2006
The time limit for claims for the enhanced deduction for accounting periods ending after 31 March 2002 but before 31 March 2006 is 31 March 2008. Claims may be made, amended or withdrawn within this time limit.
The time limit for claims for the enhanced deduction under the SME scheme for accounting periods ending on or before 31 March 2002 is six years from the end of the accounting period for which the claim is made.
HMRC would expect such claims to be made in a company’s CT self-assessment return. Normally HMRC would then treat letters modifying the claim as being amendments to the return.
Claims for payable credits under the SME scheme
There are special rules and time limits for claims for payable R&D tax credits. These are dealt with at CIRD90500.
Where there is a late claim it should be dealt with in accordance with the guidance at Statement of Practice SP05/01. While this does not specifically refer to R&D payable tax credits, the approach is a general one that HMRC adopt. If, having considered the approach outlined there, the HMRC officer is considering refusing a late claim the officer should first make a referral to CT International & Stamps.