HMRC consultation on R&D reforms

ACCA wants to hear your views

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On 20 December 2022 HMRC published draft guidance ahead of the implementation of reforms to the Research and Development (R&D) Tax Reliefs on 1 April 2023. The guidance clarifies technical aspects of how the reforms will work in practice and will include a list of the additional information that will be required for claims. Several clarifications have been made thanks to feedback received from stakeholders.

At the 2021 budget, the government announced a review of the R&D tax reliefs with the objectives of ensuring that the UK remained a competitive location for cutting-edge research, that the reliefs continued to be fit for purpose, and that taxpayer money was effectively targeted.

Several reforms have since been announced, including bringing pure mathematics research within scope of the reliefs, including data and cloud computing as qualifying costs, restricting expenditure on some overseas R&D activities and a package of measures to target abuse and improve compliance. Draft legislation for these measures was published for comment on 20 July 2022 and final legislation will be taken forward in the Finance Bill 2023.

Although members can comment directly on the email provided by HMRC, ACCA is very keen to hear your thoughts about the draft guidance and to collate these for a substantive response to HMRC.

So please do send any comments to by 10 February so that we can respond on behalf of members by the deadline of 28 February.

Further consultation on R&D tax reliefs simplification has been announced.