R&D tax relief rates and thresholds for 2026/27.

20% of qualifying R&D expenditure, for accounting periods beginning on or after 1 April 2024. The credit is taxable, and the notional tax deduction means the net benefit is about 15% for a main-rate payer and 16.2% for a loss-maker or small profits company, by our arithmetic. The Corporate Tax Roadmap said the rate would be maintained.

14.5% of the surrendered loss, which is the lower of 186% of qualifying costs and the trading loss. The payable credit is not taxable. Combined with the 86% additional deduction, it gives a maximum of about £26.97 per £100 of qualifying costs, by our arithmetic, for a company with enough loss to surrender.

For expenditure from 1 April 2023, the SME scheme gave an additional deduction of 86%, so 186% in total, with a payable credit of 10%, or 14.5% for R&D-intensive companies at a 40% threshold. Earlier, the enhancement rose from 125% to 130% in April 2015. The SME scheme applies only to periods beginning before 1 April 2024.

30% of total relevant expenditure must be relevant R&D expenditure, for accounting periods beginning on or after 1 April 2024. Connected companies' expenditure is counted, and payments to connected companies are excluded from the total. A grace period applies if the company met the condition in its last 12-month period and made a valid claim.

It fell from 40% to 30%. The 40% threshold applied under the SME scheme for the 14.5% payable credit on expenditure from 1 April 2023. The 30% threshold applies to ERIS for periods beginning on or after 1 April 2024, so more loss-making companies can now qualify for the higher rate.

The main rate of 25%, where the company has profits chargeable at the main rate ignoring the credit, and otherwise the small profits rate of 19%. A company in the marginal relief band still has profits chargeable at the main rate, so HMRC's manual confirms it uses 25%. Section 1042K of the Corporation Tax Act 2009 sets the rule.

£20,000 plus 300% of the company's relevant PAYE and NIC liabilities for the period, with the £20,000 reduced pro rata for short periods. It limits the cash payable on the credit. Companies that meet the IP exemption are not capped. The formula comes from section 1112B of the Corporation Tax Act 2009.

65% of the payment, for unconnected subcontractors and unconnected externally provided workers. For connected parties the claim is the lower of the payment and the provider's relevant costs. These rules apply to periods beginning on or after 1 April 2024, and the overseas restriction also applies to this expenditure. See our qualifying costs page for the detail.

15%. The PAYE cap does not apply if the company is creating or managing its own IP, mainly through its employees, and its connected-party externally provided worker and contractor costs are no more than 15% of its qualifying expenditure. Both conditions must be met, as set out in section 1112E.

Full claim advance assurance is for first-time SME claimants with turnover below £2 million, fewer than 50 employees and no group company that has claimed before; it covers the first three periods. The targeted pilot, from 18 May 2026, allows up to two applications, each on one project and one area, with a 40-day aim.

RDEC began at 10% in April 2013 for large companies. It rose to 11% in April 2015, 12% in January 2018 and 13% in April 2020, then to 20% for expenditure from 1 April 2023. The merged scheme keeps 20%. Our history page sets out each change with its date and source, and explains why the scheme was reformed.

The Corporate Tax Roadmap of October 2024 said the rates of the merged scheme and ERIS would be maintained, and the Corporation Tax main rate capped at 25% this Parliament. The Budget is on 28 October 2026. We check every figure after it and update this page, with the date reviewed shown at the top.

The credit rates are the same. The difference concerns the overseas restriction. Under Finance Act 2026 section 34, the Northern Ireland exemption is limited to ERIS claimants who have not opted out, for claims on or after 30 October 2024. Merged scheme claimants in Northern Ireland are outside it. Check your position before relying on it.

Notification, where required, runs from the first day of the period of account to six months after its end. The claim time limit is two years from the end of a period of account of up to 18 months, and 42 months from the first day of a longer one. Both are set out on our deadlines page.

On 11 October 2026, against HMRC guidance on gov.uk and legislation on legislation.gov.uk. We recheck after the Budget on 28 October 2026, and again when Finance Act 2027 is published. If you spot a figure that differs from an official source, please tell us and we will correct it promptly.