Important Updates for R&D Tax Relief Claimants in the UK and Northern Ireland
Important Updates for R&D Tax Relief Claimants in the UK and Northern Ireland
The UK government has published an amendment clarifying the application of restrictions on overseas R&D activities for tax relief claims. Our Tax experts have summarised what you need to know.
Overseas R&D Restrictions:
Both the SME and RDEC schemes generally restrict relief for R&D work carried out outside the UK. However, the Northern Ireland exemption has been clarified “Companies with a registered office in Northern Ireland, who claim enhanced R&D intensive support (ERIS), will continue to benefit from an exemption, unless they choose to opt out.”
Who Is Affected?
For ERIS Claimants in Northern Ireland the exemptions for oversees restrictions will automatically apply if you meet the conditions, unless you opt out.
For RDEC Claimants & those who opted out, restrictions on overseas R&D apply equally across the UK, including Northern Ireland.
Date to remember:
The amendments will apply to claims made on or after 30 October 2024.
Why does this matter?
This change brings greater clarity on how and to whom the overseas R&D restriction applies, ensuring all claimants understand their eligibility and compliance requirements.
What local businesses need to do
If you conduct R&D partly outside the UK, check your claim status and options, especially regarding the ERIS exemption in Northern Ireland. You can contact our local experts for advice and support on how to navigate this process.
For official details, visit https://www.gov.uk/government/publications/research-and-development-clarifying-the-scope-of-the-overseas-restriction
Overseas R&D Restrictions:
Both the SME and RDEC schemes generally restrict relief for R&D work carried out outside the UK. However, the Northern Ireland exemption has been clarified “Companies with a registered office in Northern Ireland, who claim enhanced R&D intensive support (ERIS), will continue to benefit from an exemption, unless they choose to opt out.”
Who Is Affected?
For ERIS Claimants in Northern Ireland the exemptions for oversees restrictions will automatically apply if you meet the conditions, unless you opt out.
For RDEC Claimants & those who opted out, restrictions on overseas R&D apply equally across the UK, including Northern Ireland.
Date to remember:
The amendments will apply to claims made on or after 30 October 2024.
Why does this matter?
This change brings greater clarity on how and to whom the overseas R&D restriction applies, ensuring all claimants understand their eligibility and compliance requirements.
What local businesses need to do
If you conduct R&D partly outside the UK, check your claim status and options, especially regarding the ERIS exemption in Northern Ireland. You can contact our local experts for advice and support on how to navigate this process.
For official details, visit https://www.gov.uk/government/publications/research-and-development-clarifying-the-scope-of-the-overseas-restriction