½Û×ÓÊÓƵ

Definition of research and development

Produced by Tolley in association with
Corporation Tax
Guidance

Definition of research and development

Produced by Tolley in association with
Corporation Tax
Guidance
imgtext

This guidance note provides information on what qualifies as research and development (R&D) tax relief for companies. The Research and development (R&D) relief ― overview guidance note provides an overview of the reliefs.

Research and development definition

The legislation defines research and development (R&D) as activities that fall to be treated as R&D in accordance with generally accepted accounting practice. The accounting definition is included in FRS 102 (or IAS 38 for international GAAP). This definition was modified by guidelines issued by the Secretary of State for Trade and Industry on 5 March 2004 (with updates made subsequently at various stages).

See Guidelines on the Meaning of Research and Development for Tax Purposes for the latest version. See also HMRC’s Guidelines for Compliance which expand on its view of the guidelines on the meaning of R&D for tax purposes and also how to identify qualifying R&D activities. Illustrative example of projects and qualifying activities are also provided.

FRS 102 defines ‘research’ as ‘original and planned investigation undertaken with the prospect of gaining new scientific

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Will Sweeney
Will Sweeney

Senior R&D Manager, Menzies LLP , Corporate Tax


Will Sweeney is a Senior R&D Manager in the Innovation & R&D team at Menzies where he looks after many of their largest clients. He has extensive experience of helping entrepreneurial clients to optimise their tax position throughout the innovation lifecycle by advising on issues including R&D tax credits, RDEC, Creative Sector reliefs and the Patent Box.In addition to his tax knowledge, Will started his career as an engineer and has worked with numerous technology, manufacturing and property sector clients. He brings a wealth of industry experience to his clients, helping him to understand the specific technical details of work undertaken by clients.Will contributes to TolleyGuidance Corporate module.

Powered by

Popular Articles

Losses on shares set against income

Losses on shares set against incomeUsually, allowable capital losses can only be set against chargeable gains. If the losses are not fully utilised against gains in the year in which they arise, the excess is carried forward to use against future gains. See the Use of capital losses guidance note

14 Jul 2020 12:12 | Produced by Tolley Read more Read more

FRS 102 ― tax presentation and disclosures

FRS 102 ― tax presentation and disclosuresPresentation of tax under FRS 102An entity must present changes in a current tax liability (or asset) and changes in a deferred tax liability (or asset) as a tax expense (or income) unless the item creating the current or deferred tax amount is recognised in

14 Jul 2020 11:46 | Produced by Tolley in association with Malcolm Greenbaum Read more Read more

Short-term business visitors (STBVs)

Short-term business visitors (STBVs)What is a short-term business visitor?An STBV for UK tax purposes is an individual who performs duties for a non-UK employer and as a part of those duties has been asked to spend a short period working in the UK. There is a common misconception that there is

14 Jul 2020 13:40 | Produced by Tolley in association with Gill Salmons Read more Read more