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HMRC internal manual

Corporate Intangibles Research and Development Manual

From
HM Revenue & Customs
Updated
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R&D Tax reliefs: R&D expenditure credit (RDEC) scheme: interaction with other reliefs

The RDEC is not a tax relief but is taken into account in calculating the profits of the trade for the period to which the credit relates similar to a grant or subsidy for R&D expenditure. The credit does not reduce the amount of the recipient’s corporation tax liability for the accounting period, but is treated as a cash amount to the credit of the company. Consequently it discharges any amount payable after any other relief or specific deduction has been made.