R&D Tax Relief Eligibility: Does Your Project Qualify?

UK R&D tax relief may be available to companies undertaking projects that seek an advance in science or technology by resolving scientific or technological uncertainty. Eligibility depends on the work performed, the applicable tax rules and supporting evidence.

Understand what HMRC considers qualifying research and development — and how to assess your projects before preparing a claim.

Last reviewed 19 October 2026

Not every project involving innovation, engineering, software or product development qualifies. HMRC applies criteria relating to advances in science or technology and the uncertainties a project seeks to resolve.

1. What makes a project eligible?

For tax purposes, R&D takes place when a project seeks an advance in science or technology. Qualifying activities generally directly contribute to resolving scientific or technological uncertainty; certain qualifying indirect activities may also be included. A project does not have to succeed to qualify.

2. What is an advance in science or technology?

An advance is an improvement in overall knowledge or capability in a field of science or technology. It is not enough for a solution to be new to your company.

Developing a process faster than your previous method is not automatically qualifying R&D. Consider whether the improvement goes beyond what a competent professional could readily achieve using existing knowledge.

3. What is scientific or technological uncertainty?

It exists when a competent professional cannot readily determine whether something is scientifically or technologically feasible, or how to achieve it in practice. It can include uncertainties about integrating known technologies into a complex system.

Ordinary technical difficulty, routine optimisation and problems solvable using established methods are insufficient on their own.

4. Who is a competent professional?

Someone with relevant scientific or technological knowledge and experience in the field. Their expertise helps establish what was already known, why the solution was not readily deducible, which uncertainties were genuine and why the technical work was necessary. Relevant experience and actual involvement matter alongside qualifications.

5. Examples of potentially qualifying R&D

Engineering and manufacturing

Developing a manufacturing method to achieve precision, repeatability or material performance that existing techniques cannot reliably deliver.

Biotechnology and life sciences

Investigating a biological mechanism or developing a technically uncertain experimental method.

Energy and cleantech

Attempting to resolve technical limitations in energy conversion, storage or system performance.

Software and AI

Resolving genuine computer science or technological uncertainties not readily addressed through established tools, algorithms or practices.

These are illustrations, not automatic eligibility decisions.

6. What activities usually do not qualify?

  • Routine product development using established methods
  • Cosmetic or aesthetic improvements
  • Standard software configuration
  • Ordinary bug fixing
  • Market research and commercial feasibility studies
  • Reproducing existing solutions without a qualifying technical advance
  • Purely commercial or organisational improvements

A commercial project may include both qualifying and non-qualifying work; identify the boundaries carefully.

7. What if the project failed?

An unsuccessful project may still qualify. Document what was attempted, why it failed and what was learned. The criteria focus on the attempt to achieve an advance and resolve uncertainty, not solely the outcome.

8. What evidence should you prepare?

  1. Scientific or technological objective
  2. Existing state of knowledge
  3. Specific uncertainty
  4. Why established methods were insufficient
  5. Work undertaken to resolve the uncertainty
  6. Difficulties, tests and changes
  7. Outcome, including unresolved uncertainty
  8. Involvement of relevant competent professionals

Support explanations with project records, design documents, test results, technical discussions and relevant published research where available.

9. How Plio helps with this

Lister AI helps organise and review technical information. It can examine descriptions of uncertainty, review the proposed advance, compare relevant published research and identify gaps. It does not certify eligibility or guarantee HMRC acceptance.

Understand your R&D before preparing your claim.

Official HMRC references

Eligibility depends on the technical facts, expenditure and applicable rules. Plio assists with preparation, not certification.

Published by: Plio — Paylists LTD

Prepared and reviewed by: Muly Zohar, Founder & Product Architect

Last published:

Sources: Official HMRC guidance and other references linked in this article.

General information only. Plio is not a tax advisory service. Read about our content responsibility and review