The science test

Latest information on how to pass the scientific/technological requirements for R&D tax credits

The first step in determining whether your company is in a position to claim the Research & Development (R&D) Tax Credit is to identify qualifying R&D. Qualifying activities must satisfy all of the following conditions:

  • Systematic, investigative or experimental activities 
  • In a field of science or technology 
  • One or more of the following categories of research and development: 
    1. Basic research, 
    2. Applied research, or 
    3. Experimental development.

Basic research means "experimental or theoretical work undertaken primarily to acquire new scientific or technical knowledge without a specific practical application in view".

Applied research means, "work undertaken in order to gain scientific or technical knowledge and directed towards a specific practical application". Applied research is usually undertaken either to determine possible uses for the findings of basic research or to determine new methods or ways of creating practical applications.

Experimental development means, "work undertaken which draws on scientific or technical knowledge or practical experience for the purpose of achieving technological advancement and which is directed at producing new, or improving existing, materials, products, devices, processes, systems or services including incremental improvements thereto"

In addition the qualifying research and development must: 

  1. Seek to achieve scientific or technological advancement, and
  2. Involve the resolution of scientific or technological uncertainty.

To discuss whether your research & development will qualify under the revenue guidelines contact our expert team below.

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