R&D Tax Credit Legislation
The legal basis for research and development tax relief in the UK.
R&D tax credits in the UK are governed by statute and HMRC guidance. This page gives a high-level overview of the main legislation and how it defines research and development for tax purposes. It is for information only and does not constitute legal or tax advice.
Corporation Tax Act 2009
The main legislation for R&D tax relief is in the Corporation Tax Act 2009 (CTA 2009). It sets out the conditions for the SME scheme and the former R&D relief for large companies, and defines ‘R&D’ by reference to guidelines (the Frascati-style definition used by HMRC). Amendments in Finance Acts have introduced RDEC, changed rates, and updated rules (e.g. data and cloud costs, anti-abuse).
Definition of R&D for tax
For tax purposes, R&D is defined in line with the Department for Science, Innovation and Technology (DSIT) guidelines. The work must seek an advance in science or technology and involve the resolution of scientific or technological uncertainty. HMRC’s internal guidance (the CIRD manual) explains how they interpret the law. R&D tax credit legislation and guidance can change; always check the latest statute and GOV.UK.
HMRC guidance and compliance
HMRC publish guidance on eligibility, qualifying expenditure, and how to claim. Compliance with R&D tax credit legislation and the terms of the relief is the responsibility of the company. HMRC may open enquiries and can withdraw or adjust relief if the rules are not met. Keeping records and understanding the current law and guidance helps ensure claims are correct.
How R&D tax credits work · How much is R&D relief? · Who is entitled?