MW High Tech Projects UK Ltd v HMRC

In MW High Tech Projects UK Ltd v HMRC [2023] UKFTT 1040 (TC) (5 December 2023) the First-tier Tribunal (FTT) upheld HMRC’s decision to refuse a R&D expenditure credit (RDEC) claim where the taxpayer’s statutory accounts for the relevant years stated it was not a going concern.

The taxpayer was an engineering and construction company which by the end of 2016 had suffered considerable financial losses because of technology challenges in its business. It prepared its accounts for the year ended 30 December 2017 otherwise than on a going concern basis.

On 4 April 2019 the taxpayer company made a claim in its corporation tax return for the year ended 30 December 2017 for a RDEC of over £1.93m. HMRC subsequently refused the claim.

One of the conditions for a company to be entitled to a RDEC was that it had to be a going concern at the time...

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