The research and development expenditure credit (RDEC) for qualifying Research and Development (R&D) will increase from 11% to 12% for qualifying expenditure incurred on or after 1 January 2018.

From 1 April 2016, R&D relief for large companies  has been given only by means of Research and Development Expenditure Credit (RDEC).

Prior to this, relief was given in two different ways, by enhanced deduction of 30% of qualifying costs or, from 1 April 2013, the RDEC. The RDEC is also available to SMEs who are precluded from claiming under the SME scheme  because:

  • They are in receipt of a notified state aid in respect of the project.
  • Part or all of the project was subsidised.
  • The SME was contracted to carry out the R&D.

The RDEC is an above the line deduction. It started at 10% in 2013 and increased to 11% in 2015, therefore the 1 January 2018 increase to 12% puts it at its highest level to date.


Research and Development Tax Reliefs: introduction

R&D: Large Company Scheme (RDEC) Guide



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