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Policy Paper Published 4 Mar 2021 HM Revenue & Customs ↗ View on GOV.UK

Preventing abuse of Research and Development tax relief for small and medium-sized enterprises

This measure introduces a limit to prevent the abuse of Research and Development (R&D) tax relief for SMEs.

▤ Verbatim text from source document

The amount of payable small or medium sized enterprise (SME) R&D tax credit which a company can claim in a period will be limited to £20,000 plus 300% of its total PAYE and National Insurance contributions liability for the period.

Read the Preventing abuse of the R&D tax relief for SMEs consultation and summary of responses.