Research & Development (R&D) Capital Allowances

R&D Capital Allowances are available on certain capital expenditure, incurred by both companies and sole-traders, which meets the HMRC definition of Research and Development. Click here to see the HMRC definition of R&D.

Qualifying expenditure
The expenditure must be for the purposes of the R&D project and of a capital nature. The main exclusion is expenditure on purchases of land or dwellings.

The Allowance
100% capital allowances can be claimed on qualifying expenditure in the accounting period the expenditure is incurred.

Making the claim
As with other capital allowances the claim is made as a deduction in the corporation tax return for companies or in the self-assessment return for sole traders. It is a good idea to include a submission letter, detailing why the expenditure qualifies, with the claim or to discuss the claim in advance with your local Tax Inspector.

To find out more about R&D Capital Allowances and to use our R&D related services , please call (0) 1223 507080 or email info@tax.uk.com