• Date

    04 Apr 2024
  • Category

    R&D Tax Credits
  • Author

    Gemma Monaghan

Updated draft guidance issued by UK Government on R&D tax relief

As we communicated in February, a Government consultation has recently been underway for the UK’s research & development (R&D) tax relief system. The consultation, which focused on contracting out rules and overseas restrictions, ran until 1 March 2024 and we participated in the process on behalf of our clients.


What’s the latest?

With the consultation being complete, the Government has now released updated draft guidance, which is accessible here. While there are continuing and much-publicised challenges with the Government’s processing of R&D claims, we’re encouraged that some of our recommendations and clarifications have been included in the draft, including:

  • Calling HMRC to include references to existing guidelines in relation to record keeping of R&D activity
  • More guidance related to IP ownership when looking at the conditions that may apply on claiming overseas expenditure


What happens next?

The draft guidance relates to claims beginning on or after 1 April 2024. However, with regards to the subcontracting aspect, HMRC may look to infer that this has always been the case and that the guidance has simply provided clarification rather than a change in process.

Any business looking to submit an R&D claim now or in the future needs to be aware of this guidance to ensure no complications to the submission process.


We are here to help

Over the course of the past several months, R&D tax relief has gone through numerous changes, including the introduction of new administrative regulations from 8 August 2023. Given the changing landscape for claims, it’s becoming increasingly more complex compiling a submission. However, we are on hand to assist with the process and ensure that those businesses who are in a position to apply can get their claim put forward.

If you have any questions on the R&D scheme or would like assistance with an ongoing or upcoming claim, please get in touch with your usual Azets advisor or a member of our specialist R&D team.

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Gemma Monaghan

About the author

Gemma Monaghan Photo

Gemma Monaghan

R&D Tax Partner Glasgow Glasgow City

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