RDA tax claims.

Earn money for your research

Research and development allowances (RDAs), also known as R&D capital allowances, enable firms to deduct 100% of their capital expenditures for a number of things, including:

  • R&D facilities
  • laboratories
  • plant and machinery
  • company cars for workers
  • IT systems
  • renovating development facilities.

As all R&D expenses on fixed assets are wiped off in year one, this enables the release of funds into a corporation.

So why is this good for your business? RDAs can provide 100% tax relief for items for which no capital allowances (or AIA) are usually claimable, such as a research laboratory. This is a huge potential saving.

The sum that can be claimed has no upper limit (unlike AIA) RDAs are particularly beneficial to larger businesses that are spending over the AIA threshold or purchasing capital items not covered by AIA, such as buildings.

R&D can be confusing, but give us an hour or two, and our personal tax accountants can explain how RDA allowances can benefit your business.

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