HMRC has published draft guidance ahead of the implementation of reforms to the Research and Development (R&D) Tax Reliefs on 1 April 2023. This guidance clarifies technical aspects of how the reforms will work in practice and includes a list of the additional information that will be required for claims. Several of the clarifications have been made thanks to stakeholder feedback.
Draft guidance covering changes to the Research and Development (R&D) tax reliefs is due to be implemented on 1 April 2023.
This consultation closes at 11:45pm on 28 February 2023.
At Budget 2021, the Government announced a review of the R&D tax reliefs. Several reforms have since been announced, including bringing pure mathematics research within scope of the reliefs, including data and cloud computing as qualifying costs, restricting expenditure on some overseas R&D activities and a package of measures to target abuse and improve compliance.
Draft legislation for these measures was published for comment on 20 July 2022 and final legislation will be taken forward in the Finance Bill next year.
HMRC welcomes comments from any individuals or organisations who make use of or provide tax agent services for R&D tax reliefs.