Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Skynet software

29 May 2012 / Paul Duckworth , James Tetley
Issue: 4355 / Categories: Comment & Analysis , R&D , Companies
PAUL DUCKWORTH and JAMES TETLEY explain why a company’s claims for R&D relief need not be terminated


  • HMRC guidance on eligible software claims.
  • The need for an advance in the software.
  • An uncertainty needs to have been resolved.
  • Examples of qualifying and non-qualifying projects.
  • Internal developments not for resale may still qualify.

Research and development (R&D) tax relief has made the headlines in the tax world over the past 18 months as the Treasury continues to improve the benefit of the relief to companies.

The relief currently provides for a 225% enhanced tax deduction for small and medium-sized enterprises (SMEs) and 130% for large companies.

However there continues to be confusion over whether software development qualifies for R&D tax relief.

There needn’t be any mysterY; one just needs to approach any claim logically and invest time in understanding the intricacies of what...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon