Specialist R&D Tax & Grant Funding Advisors

R&D Capital Allowances

R&D grants can provide valuable funding for your innovative projects. Take advantage of Myriad Associates’ extensive experience & know-how to help you select the right grant for your project as well as greatly improve your chances of success.

R&D Capital Allowances

Guide Overview


These six short sections explain what R&D capital allowances are, how they work, if you’re eligible, and how to make a claim.

What are R&D Capital Allowances?


R&D Capital Allowances are a form of tax relief. They allow you to claim 100% tax relief on any eligible capital expenditure that’s related to your R&D activities.

So, if you’re spending money on assets that are helping you to develop or improve products, processes, materials, or services, or resolve scientific or technological uncertainties, then you could be eligible for R&D Capital Allowances.

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Who are R&D Capital Allowances for?


Don’t overlook R&D Capital Allowances if you have:

  • Bought, refurbished, or developed property for R&D purposes
  • Invested in plant, machinery, fixtures, or fittings to support R&D activity
  • Implemented internal IT systems for R&D

Feel free to contact us to get the ball rolling on your R&D Capital Allowances claim.

R&D activities & expenses that qualify


Expenses that qualify for RDAs:

Expenses that qualify for RDAs:

  • Plant Machinery
  • Research equipment
  • Research and development facilities
  • Internal IT systems
  • Purchase, construction or extension of property (not the purchase of land though)
  • Company cars (that are used for R&D purposes)

Activities that qualify for RDAs:

If your project is eligible for R&D tax credits, you should be claiming R&D Capital Allowances for any capital expenditure. Activities such as developing or improving materials, products, services and processes would be eligible for an RDA claim.

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How do R&D Capital Allowances work?


R&D Capital Allowances allow you to claim for any fixed assets that have been purchased for R&D activities. These can range from equipment and research costs to expenses for building renovations.

When you file an RDA with HMRC, you’ll need to make sure the RDA is reflected correctly in your tax computations and CT600, that all your R&D expenditure is recorded and eligible and you include a project brief that explains why these capital expenditures were made and how they relate to the industry you’re in.

“We have been working with Myriad for a number of years... I am delighted with their thoroughness to ensure we capture all of our claimable R&D expenditure. The whole process is seamless.”

Paul Smith

Chief Executive Office, Charpak Ltd

How can we help?


We’ve been in the R&D tax relief industry for over a decade. With a 100% success rate, we’re so confident in our offering that we offer our R&D capital allowances claim services on a success-only basis.

Our team of specialist R&D tax advisors will handle your RDA claim from start to finish and will ensure you get the maximum amount of R&D capital allowances.

About Myriad Associates
R&D Capital Allowance
  • We handle your RDA claim from start to finish, taking up as little as possible of your time.
  • We can maximise your claim because our expert consultants know precisely what you can claim and how much you can claim.
  • We write reports describing your R&D capital expenditure that R&D tax inspectors will approve.
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Our results

  • 100% success. We have been successful in every RDA claim submitted for our clients, for over ten years and without exception.
  • We are a trusted and respected advisor to our many delighted clients with an industry high customer retention rate.
  • We have achieved exceptional results by resubmitting RDA claims that were originally filed by the client. 
  • An unbeatable offer. We are so confident that we deliver a winning service, we offer our RDA claim services on a success-only basis.

Frequently asked questions


R&D Capital Allowances allow you to claim for any fixed assets that have been purchased for R&D activities. These can range from equipment and research costs to expenses for building renovations.

When you file an RDA with HMRC, you’ll need to make sure the RDA is reflected correctly in your tax computations and CT600, that all your R&D expenditure is recorded and eligible and you include a project brief that explains why these capital expenditures were made and how they relate to the industry you’re in.

You will need to provide evidence to show:

  • The company is undertaking eligible R&D activity
  • The costs are capital in nature and qualify under GAAP

The costs were incurred in the relevant period

You can claim R&D Capital Allowances (RDAs) up to a year after the tax return deadline. This means you could potentially claim RDAs for up to 2 years after the accounting period that their costs were incurred.

Because this is also true for R&D tax credits, it’s a good idea to claim both allowances at the same time.

Yes. You can’t claim RDAs and R&D tax credits on the same expenditure, but you can claim them both in the same year on different expenditures. The trick is to ensure you maximise the tax reliefs that give you the best possible outcomes.

R&D Tax Credits usually only apply to the R&D costs that are incurred on a day-to-day basis (eg. staff wages), as opposed to expenditure on capital assets (eg. buildings)

To summarise the differences between the two:

RDAs apply to capital expenditure on things like plant machinery, facilities and buildings (not land). The biggest benefit of RDAs is that you’ll get 100% first-year capital allowance, so no tax relief on up to 19% on the cost of the asset.

R&D tax credits apply to operational / revenue expenditure on things like salaries, consumables, subcontracting and software. The biggest benefit of R&D tax credits is that you can claim up to 33% of the R&D costs incurred.

An RDA must be claimed within 2 years. There is no clawback of the tax relief if the company stops using the equipment for R&D purposes, whether that is during the period or after.

Most R&D related capital expenditure qualifies for a tax reduction under R&D Capital Allowances. Exceptions include spending on intellectual property and land.

Spending on the following is always eligible:

  • Purchase, construction or refurbishment of R&D facilities or property. If an R&D centre is part of a larger facility – and if the centre accounts for at least 75% of the overall cost of the facility – then R&D Capital Allowances can apply to the entire facility
  • Laboratory equipment
  • Company cars for R&D staff

Spending on the following may be eligible:

  • Developing internal IT systems
  • Equipment that enables you to make a technological advancement in a process, material, device, product, or service

R&D Capital Allowances are a form of tax relief. They allow you to claim 100% tax relief on any eligible capital expenditure that’s related to your R&D activities.

So, if you’re spending money on assets that are helping you to develop or improve products, processes, materials, or services, or resolve scientific or technological uncertainties, then you could be eligible for R&D Capital Allowances.

Don’t overlook R&D Capital Allowances if you have:

  • Bought, refurbished, or developed property for R&D purposes
  • Invested in plant, machinery, fixtures, or fittings to support R&D activity
  • Implemented internal IT systems for R&D

Contact Myriad Associates to get the ball rolling on your R&D Capital Allowances claim.

Expenses that qualify for RDAs:

  • Plant Machinery
  • Research equipment
  • Research and development facilities
  • Internal IT systems
  • Purchase, construction or extension of property (not the purchase of land though)
  • Company cars (that are used for R&D purposes)

Activities that qualify for RDAs:

If your project is eligible for R&D tax credits, you should be claiming R&D Capital Allowances for any capital expenditure. Activities such as developing or improving materials, products, services and processes would be eligible for an RDA claim.

R&D Capital Allowances is a generous scheme that provides you with another revenue stream to support your R&D projects.

Benefits:

  1. Uncapped claims
    Unlike Plant and Machinery Allowances (PMA) or Annual Investment Allowances (AIA), with R&D Capital Allowances the tax relief isn’t capped and there is no maximum limit to the amount you can claim.

  2. Claim retrospectively
    Rather than being too late to make a claim or having to wait more than 20 years to get the full tax relief, you can claim R&D Capital Allowances up to 2 years after the accounting period that their associated costs were incurred.
  1. Cashflow boost  
    With 100% tax relief available on R&D capital expenditure, RDAs are a great funding stream, especially if you’ve invested in buildings or facilities for your R&D: For every £100 spent you can get up to £19 back.

  2. Covers most assets
    You can receive 100% tax relief on the purchase of pretty much any R&D buildings, equipment, internal IT systems and facilities. These are expenses that aren’t covered in other capital allowances.  

Does your business qualify?

Speak to our experts today to see if your activities qualify.

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Is your business registered for Corporation Tax in the UK or are you a partnership with corporate owners?

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Have you developed new or improved existing products, processes or services in the last 2 years?

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Have you incurred any R&D costs on staff, contractors and consumables?

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Does your business employ more than 500 people, or does it have more than €86 million in turnover?

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Sorry, you must be a UK limited company or be a Partnership with corporate owners to be eligible for R&D tax credits.

In order to qualify for R&D tax credits you must be seeking to advance science or technology within your industry. As you’ve not developed any new or improved any existing innovative tools, products or services, and not re-developed any existing products, processes or services in the last 2 years. It is unlikely you have any qualifying activity. If you’re unsure, email or call us and we’ll help clarify.

In order to claim R&D tax credits, you need to either employ staff or spend money on contractors, consumable items and other items. If you’re unsure, email or call us and we’ll help clarify.

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Congrats!! Based on your previous answers, you will qualify for the SME scheme. If you’d like some help maximising and securing your claim, please email or call us.

Congrats!! Based on your previous answers, you will qualify for the RDEC scheme. If you’d like some help maximising and securing your claim, please email or call us.

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