Knowledge bank
Sector notes
How the rules can hit differently by industry.
6 answers
- Can a motorsport or automotive business claim R&D tax relief? Some of it does. Designing a component to resolve a genuine technical unknown can qualify; setting up, optimising and selecting between existing parts does not, however hard-won the lap time.
- Does aerospace work qualify for R&D tax relief? Much of the design and development does. Certification does not — and the line between proving a design and developing one is where most aerospace claims are won or lost.
- Does defence work qualify for R&D tax relief, and how do you claim it? Much of it does, on the ordinary test. The hard part is evidential: HMRC has published nothing on classified work, so the claim has to describe the technology without the application.
- Does engineering or manufacturing work qualify for R&D tax relief? Often, and more often in the process than the product. The hard question is rarely whether the work was R&D — it is whether you or your customer is entitled to claim it.
- Does quantum or advanced science work qualify for R&D tax relief? Almost always some of it. The difficulty is not whether the science is hard enough — it is framing the advance at the right level and keeping the cost boundary defensible.
- Does software development qualify for R&D tax relief? Often, but not because it is difficult or new to you. The test is whether a competent developer could have said at the outset how to do it — and proving that is where claims fail.
Get in touch