British Tax Review - Finance (No.2) Act 2023 Notes: Section 10 and Schedule 1: relief for research and development

Legislative comment by Kasim Mehmood

Section 10 of and Schedule 1 to the Finance (No.2) Act 2023 make four key changes to the UK’s tax relief regimes for research and development, the research and development expenditure credit which generally applies to “large” companies and the research and development expenditure relief regime for small and medium enterprises, providing for new pre-claim “claim notifications” to be submitted to HMRC in certain circumstances, the granting of relief in respect of expenditure on data and cloud computing, the granting of new powers and information rights to HMRC in respect of claims for relief and the “safeguarding” of SME status for companies in circumstances where a company may otherwise fall outside the scope of the relevant SME thresholds.

This material was first published by Thomson Reuters, trading as Sweet & Maxwell, 5 Canada Square, Canary Wharf, London, E14 5AQ, in the British Tax Review as “Finance Act 2023: Section 4: amount of relief for expenditure on research and development (Legislative Comment)” B.T.R. 2023, 4, 395-401 and is reproduced by agreement with the publishers.