Policy paper

Research & Development (R&D) tax relief reforms

These measures combine the current Research and Development Expenditure Credit (RDEC) and R&D SME scheme into a merged scheme, implement the enhanced support for R&D intensive SMEs and restrict the use of nominations and assignments for R&D tax credit payments.

• From: HM Revenue & Customs
• Published: 22 November 2023
• Last updated: 23 November 2023 — See all updates

Documents

Merger of current small or medium enterprise (SME) and Research and Development Expenditure Credit (RDEC) schemes

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Enhanced support for Research & Development (R&D) intensive small or medium enterprises (SMEs)

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Restricting nominations and assignments for Research and Development (R&D) Relief

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Details

As announced at Autumn Statement 2023, the government will legislate in Autumn Finance Bill 2023 to:

• merge the current RDEC and R&D SME schemes for accounting periods beginning on or after 1 April 2024
• implement the enhanced support for R&D intensive SMEs that was announced at Spring Budget 2023, providing a higher rate of payable tax credit for eligible SMEs
• restrict the use of nominations and assignments for R&D tax credit payments

Published 22 November 2023
Last updated 23 November 2023 + show all updates

1. 23 November 2023

   The exchequer impact has been updated in 'Enhanced support for Research & Development (R&D) intensive small or medium enterprises (SMEs)' and 'Merger of current small or medium enterprise (SME) and Research and Development Expenditure Credit (RDEC) schemes'.

2. 22 November 2023

   First published.