Value of R&D relief up, number of claims down

New research on companies claiming Research and Development (R&D) tax credits shows the value of tax relief support was £8.2 billion, an increase of 5%, while the number of R&D tax credit claims decreased by 17% for 2024-25.

The 2026 Research and Development (R&D) publication, produced by HMRC, examines the number of companies claiming R&D tax credits and the associated cost to the Exchequer.

For tax purposes, R&D is defined as a project that seeks to achieve an advance in science or technology and directly contributes to achieving this advance through the resolution of scientific or technological uncertainty. All expenditure claimed should be detailed.

This is the first publication to include statistics for the new merged R&D Expenditure Credit (Merged RDEC) and Enhanced R&D Intensive Support (ERIS) schemes, that were introduced for accounting periods beginning on or after 1 April 2024, replacing both previous R&D tax relief schemes.

The research estimated that the amount of tax relief claimed through the Small and Medium-sized Enterprise (SME) and ERIS schemes fell by 29% compared with the previous year, to £2.3 billion.

This was largely due to a combination of SMEs claiming under the new Merged RDEC scheme, and the new rates of relief available under the SME scheme being available for a full year of expenditure.

The amount of relief claimed through the RDEC and Merged RDEC schemes increased by 29% to £5.9 billion as companies began claiming under the new schemes.

The number of R&D tax credit claims for the financial year 2024 to 2025 was estimated at 40,325, a decrease of 17% from the previous year driven by a decrease in SMEs claiming while large company claims increased by an estimated 4%.

The average claim value increased by 27% from 2024 to 2025. This contributed to an increase in the total value of R&D relief claimed, despite a reduction in the volume of claims. Consistent with patterns of previous years, a small proportion of claims (6%) accounted for 69% of the total value of claims.

Claimants were dominated by Information & Communication, Manufacturing, Professional and Scientific & Technical sectors, making up 75% of total claims and 71% of the total amount claimed.

To see the full report, go to: https://www.gov.uk/government/statistics/corporate-tax-research-and-development-tax-credit/research-and-development-tax-credits-statistics-september-2026 

If you need help in planning an R&D project or want your figures reviewed, please get in contact. 

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