News article

Consultation: Preventing abuse of the R&D tax relief

10 April 2019


Businesses are invited to give their views on the proposed cap on R&D tax credits

The government is consulting on changes to research and development (R&D) tax reliefs, first announced at Budget 2018, which are intended to prevent abuse of the small or medium-sized enterprise (SME) scheme.

The changes involve introducing a cap on the amount of payable tax credit that a qualifying loss-making business can receive through the relief in any one accounting period.

The cap will be three times the company's total PAYE and NICs liability for that year and will be implemented from April 2020.

The consultation is seeking views on how the cap will be applied, so as to minimise any impact on genuine businesses, before it is legislated in Finance Bill 2019-20.

Download the Preventing abuse of the R&D tax relief for SMEs: consultation document (PDF, 347K).

How to respond
You can email your response to consultation2019.rdtaxrelief@hmrc.gov.uk or write to:
Business, Assets and International
CT Innovation & Growth team
HM Revenue and Customs
Room 3C/21
100 Parliament Street
Westminster
London
SW1A 2BQ