Preventing abuse of R&D tax relief for small and medium-sized enterprises
Released 12 November 2020
HMRC have published a policy paper covering a change to the research and development (R&D) tax relief rules for small and medium-sized enterprises which will take effect from 1 April 2021.
From 1 April 2021, 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.
Further information can be found in the policy paper Preventing abuse of Research and Development tax relief for small and medium-sized enterprises.
The draft legislation and explanatory notes can be found at https://www.gov.uk/government/publications/preventing-abuse-of-research-and-development-tax-relief-for-small-and-medium-sized-enterprises.