What is Research and Development?
H M Revenue and Customs acknowledges the guidelines published by the former Department of Trade and Industry in 2000 and subsequently 2004 to determine whether research and development exists for tax purposes.
A summary of the definition is that R&D takes place where there is a project with activities that directly contribute to achieving an advance in science or technology through the resolution of scientific or technological uncertainty.
Although the definition may seem tailored to include only high-tech companies with specialised R&D laboratories and departments, this is not always the case. Many companies in differing industries have successfully claimed R&D tax relief and the generous relief should not be over-looked.
Whether a company is undertaking qualifying R&D is often open to debate, so if you are unsure or wish to receive clarification, please contact Andrew Reid at reid@capitus.co.uk
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