The introduction of the new merged scheme and the R&D intensive SME relief marks a significant shift in the landscape of R&D tax incentives.

The new merged scheme, coming into effect for accounting periods starting on or after 1 April 2024, streamlines the previously separate SME and RDEC reliefs into a singular, more accessible framework.

The R&D intensive SME relief, designed specifically for SMEs that allocate a substantial portion of their expenses towards R&D activities, will run simultaneously. This relief was introduced for qualifying R&D expenditure incurred on or after 1^st April 2023, with significant updates made for accounting periods starting on or after 1^st April 2024.

The changes reinforce the importance of accurately identifying the correct and most beneficial relief option for your business to fully maximise the tax benefits available and to avoid penalties from HMRC.