Quick answer: Eligible R&D activity is work forming part of a project that seeks an advance in a field of science or technology by resolving scientific or technological uncertainty. It includes directly contributing work like design, prototyping and testing, plus qualifying indirect activities, but excludes routine work, market research and administration.
What is eligible R&D activity?
Eligible R&D activity, for UK tax purposes, is work undertaken as part of a project that seeks an advance in the overall knowledge or capability of a field of science or technology through the resolution of scientific or technological uncertainty. The test applies regardless of whether the advance is ultimately achieved. Eligible activities include directly contributing work such as design, prototyping and testing, and qualifying indirect activities such as scientific research management and R&D-specific training. Routine work, market research, administration and aesthetic design are not eligible.
How does HMRC define eligible R&D activity?
HMRC incorporates the BIS Guidelines in full at CIRD81300 and cross-references them at CIRD81350 for directly contributing activities and CIRD81900 for qualifying indirect activities. The 2023 update to the guidelines, titled Guidelines on the meaning of research and development for tax purposes, is the current operative version.
What does eligible R&D activity look like in practice?
A pharmaceutical SME running a clinical trial programme treats the clinical trial design, laboratory assay development and statistical modelling as directly contributing R&D. Ancillary activities such as recruitment of trial sites and ethics-committee liaison qualify only to the extent they are specific to the R&D, and general project administration does not qualify.
Related terms
- BIS Guidelines
- Qualifying Indirect Activities (QIA)
- Scientific or Technological Advance
- Qualifying Body
Frequently asked questions
It is work undertaken as part of a project that seeks an advance in the overall knowledge or capability of a field of science or technology through resolving scientific or technological uncertainty, regardless of whether the advance is ultimately achieved. Use the free eligibility calculator for an indicative check of whether a project's activity qualifies.
Routine work, market research, administration and aesthetic design are not eligible R&D activity.
Yes. Qualifying indirect activities such as scientific research management and R&D-specific training count, alongside directly contributing work such as design, prototyping and testing.