As explained in the March edition of Agent Update, the Finance Act 2025 made changes to the enhanced relief for loss-making research and development (R&D) intensive SME (small or medium-sized) companies.

Enhanced Research and Development Intensive Relief (ERIS) is a Corporation Tax (CT) relief that can be claimed by such companies. These changes apply to companies that have a registered office in Northern Ireland. They took effect for claims to ERIS made on or after 30 October 2024. 

For these companies, the additional benefit provided by ERIS, over and above the benefit of a claim under the other Research and Development relief, the Research and Development expenditure credit (RDEC), is state aid. This means that the claimants must comply with limits on the amount of state aid received in a three-year period and that HMRC must issue them with a state aid notification, which they must keep as part of their business records. This information will be shared on an EU database from January 2026.

All companies claiming either of the Research and Development reliefs must supply HMRC with information about the claim using an online form. The form for ERIS companies in Northern Ireland has now been updated so that the amount of state aid received can be identified and HMRC can supply the notification.