RESEARCH AND DEVELOPMENT ALLOWANCES (RDA)

This is a form of capex tax relief from the government, for businesses that carry out “advancement in science and technology” activities which could be directly trade related or aimed at improving back office functions. The relief relates to tangible costs such as buildings as well as plant and machinery for research and development (R&D).

Intangible costs such as personnel (employee and subcontractor) costs, software, consumables and clinical trials may also qualify for tax deduction or cash injection via the Research and Development Tax Reliefs regime.

More About RDA

Formerly known as scientific research allowances, RDA benefits as claimable in accordance with certain requirements for R&D as legislated in Corporation Tax Act 2009. as well as Capital Allowances Act 2001. It is only available to traders / companies subject to Corporation Tax.

Activities considered to be or not to be R&D are provided under Income Tax Act Section 1006. Further information on types of R&D as well as qualifying projects are provided below.