Explanatory note

These Regulations amend the Relief for Research and Development (Content of Claim Notifications, Additional Information Requirements and Miscellaneous Amendments) Regulations 2023 to restate the information that has to be provided by a company claiming relief from corporation tax in respect of expenditure on research and development (“R&D”). The changes they make reflect significant reforms to the R&D regime made by Schedule 1 to the Finance Act 2024. The Regulations also:

• make a small technical amendment of those 2023 Regulations in relation to notifications of R&D claims, and

• amend the Income and Corporation Taxes (Electronic Communications) Regulations 2003 to require notifications under regulation 2(3)(b) of the Research and Development (Chapter 2 Relief) Regulations 2024 (which enable certain companies to opt out of the special rules laid down by those Regulations) to be made electronically.

Schedule 1 to the Finance Act 2024 introduces the new merged R&D scheme, together with additional relief for loss-making, R&D-intensive small and medium-sized enterprises (“SMEs”) through a higher rate of payable tax credit.

A Tax Information and Impact Note (“TIIN”) on the merged R&D scheme and a TIIN on the enhanced support for R&D-intensive SMEs both of which cover this instrument were published on 22nd November 2023 (and updated on 23rd November 2023) alongside the Autumn 2023 Finance Bill and are available on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins. They remain an accurate summary of the impacts that apply to this instrument.