Consultation outcome

The scope of qualifying expenditures for R&D Tax Credits: consultation

From:: HM Treasury
Published: 21 July 2020
Last updated: 3 March 2021 — See all updates

Read the full outcome

The scope of qualifying expenditures for R&D Tax Credits: 2020 consultation – summary of responses

PDF, 251 KB, 19 pages

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Detail of outcome

Officials have analysed responses, and written this summary of responses document to outline the key messages put across by stakeholders.

The decision on whether data and cloud computing costs will be brought into the scope of qualifying expenditure will be taken alongside the wider review of R&D tax credits that was announced at budget, and is currently being consulted on.

Original consultation

Consultation description

R&D tax credits are a core part of the government’s support for innovation. The tax credits support innovative businesses as they invest, driving growth and productivity across the UK.
Spring Budget 2020 announced that the government would consult on what costs companies can include in R&D tax credit claims, and whether these need to be updated to ensure the credits remain well-targeted and reflect modern R&D processes.
The government is interested in hearing from stakeholders as it considers whether to include R&D costs for data and for “cloud computing”.
Expanding the scope of qualifying costs would have an exchequer impact, therefore the government would also be interested to hear about current eligible costs that could be considered routine work and should not be receiving relief.

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