Reform of Research and Development Tax reliefs
Following the review of R&D tax reliefs launched at Budget 2021, the government announced changes to the reliefs at Autumn Statement 2021 to incentivise R&D using modern computational approaches and to tackle abuse and improve compliance.
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Legislation will be included in the Spring Finance Bill 2023 to extend the scope of qualifying expenditures to include the costs of datasets and of cloud computing. This will apply to accounting periods beginning on or after 1 April 2023.
Legislation will also be included to tackle abuse of the reliefs. Companies will need to inform HMRC, in advance, that they plan to make a claim. This will apply to accounting periods beginning on or after 1 April 2023.
Also, from 1 August 2023 all claims to the R&D reliefs will have to be accompanied by a compulsory additional information form, providing HMRC with more detail of the claim.