R&D tax relief eligibility
Eligibility begins with a qualifying project, not with a sector label or the fact that a product is new to the company.
Key points
- The project must seek an advance in science or technology.
- Scientific or technological uncertainty must prevent the solution being readily deducible.
- A competent professional should be able to explain the baseline, advance, uncertainties and work undertaken.
- Commercial novelty, routine adaptation or ordinary debugging do not establish eligibility by themselves.
Start with the field and baseline
Describe the relevant field of science or technology and what was already publicly available or readily deducible when the project began. The claimed advance is measured against that wider baseline, not only against the company's own knowledge.
Explain the uncertainty
A technological uncertainty exists where whether or how the advance can be achieved is not readily available or deducible to a competent professional. The explanation should identify the specific limitation and why established approaches did not resolve it.
- What capability or knowledge was missing?
- Why was the answer not readily deducible?
- Which alternatives, prototypes or tests were considered?
- What was learned, including from unsuccessful work?
Define the qualifying boundaries
Qualifying activity can include work that directly contributes to resolving the uncertainty and certain indirect activities. Routine production, sales, cosmetic changes and work after the uncertainty is resolved should be separated from the qualifying project.