R&D tax relief currently provides an enhanced deduction of 230% of qualifying R&D revenue costs. This is made up of:
- 100% of the costs which would normally be deducted without R&D tax relief; and
130% of those tax deductible costs.
This means that for every £100 of qualifying R&D costs, £230 is deducted from the company’s pro ts, or added to the company’s trading losses for tax purposes.