R&D tax relief is a government financial incentive designed to encourage innovation and reward companies who invest in it. If you're doing anything novel or challenging in your field, you may qualify for tax relief and should discuss your work with one of our highly qualified R&D tax consultants to ascertain your eligibility. R&D tax relief has undergone significant changes in recent years. Accordingly, qualifying for the scheme depends on various situational attributes such as, company size and the accounting period being claimed for.
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According to the most up-to-date information provided by HMRC, the provisional estimated amount of total tax relief support claimed for 2021 to 2022 was £7.6 billion, an increase of 11% from the previous year. This equates to £44.1 billion of R&D expenditure (8% higher than the last year).

HMRC (HM Revenues and Customs), the body overseeing UK tax collection, payments, and customs authority, manages the R&D tax credits initiative, that was launched by the Labour Government in 2000.

The scheme aims to provide valuable financial assistance to eligible companies to foster growth, and ultimately further their research and development via corporation tax relief, or a cash lump sum.
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HMRC considers R&D to be being carried out if you are a limited company:

Modifying or improving a product, service, or process

Creating products, services, or processes

Solving technical problems with no apparent existing solution

In addition, the work must set out to resolve scientific or technological uncertainty, and is open to various industries, including software, life sciences and engineering.

Two schemes formerly characterised the R&D landscape:

Small and medium-sized enterpises (SMEs)

Research and Development Expenditure Credit (RDEC) designed for large companies and SME's that were contracted by large companies or received subsidies