The government’s intention is to merge the current SME and R&D Expenditure Credit (RDEC) R&D schemes into one above-the-line credit scheme. This will broadly follow the current RDEC scheme, with a headline rate of relief of 20%. The merged scheme will take effect for accounting periods beginning on or after 1 April 2024, and will run alongside the SME R&D-intensive scheme which started on 1 April 2023 (which will also see some changes from April 2024). SMEs that do not qualify for the R&D-intensive scheme will see a significant reduction in the tax relief they can claim under the merged scheme.
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The government’s intention is to merge the current SME and R&D Expenditure Credit (RDEC) R&D schemes into one above-the-line credit scheme. This will broadly follow the current RDEC scheme, with a headline rate of relief of 20%. The merged scheme will take effect for accounting periods beginning on or after 1 April 2024, and will run alongside the SME R&D-intensive scheme which started on 1 April 2023 (which will also see some changes from April 2024). SMEs that do not qualify for the R&D-intensive scheme will see a significant reduction in the tax relief they can claim under the merged scheme.
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