The Research and Development (Chapter 2 Relief) Regulations, SI 2024/348, provide an alternative approach to claiming relief under the new R&D scheme from 1 April 2024, specifically for SMEs whose registered office is in Northern Ireland. This is in essence a relaxation from the rules which restrict claims for contracted-out overseas expenditure under the R&D-intensive enhancement for loss-making SMEs.
Northern Ireland companies will not be subject to the restrictions on overseas R&D expenditure and will be able to benefit from the enhanced relief without having to show that ‘special circumstances’ exist. Enhanced relief will, however, be capped so that it does not exceed £250,000 in any three-year period (this is a limit on the additional benefit under the SME part of the scheme compared to claiming the RDEC that applies for all companies).
HMRC have said that these changes reflect the specific market conditions in Northern Ireland.
The Research and Development (Chapter 2 Relief) Regulations, SI 2024/348, provide an alternative approach to claiming relief under the new R&D scheme from 1 April 2024, specifically for SMEs whose registered office is in Northern Ireland. This is in essence a relaxation from the rules which restrict claims for contracted-out overseas expenditure under the R&D-intensive enhancement for loss-making SMEs.
Northern Ireland companies will not be subject to the restrictions on overseas R&D expenditure and will be able to benefit from the enhanced relief without having to show that ‘special circumstances’ exist. Enhanced relief will, however, be capped so that it does not exceed £250,000 in any three-year period (this is a limit on the additional benefit under the SME part of the scheme compared to claiming the RDEC that applies for all companies).
HMRC have said that these changes reflect the specific market conditions in Northern Ireland.
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