Tax relief · England, Wales, Scotland, Northern Ireland
Research and Development (R&D) tax relief
Companies doing genuine research to advance science or technology (for example developing a new growing system or kit) can get tax relief or a payable credit on the costs.
- From
- HMRC
- How much
- Merged scheme: 20% expenditure credit. Loss-making R&D-intensive small companies: extra 86% deduction and a payable credit of 14.5% of the loss.
- Who can apply
- Limited companies paying UK Corporation Tax. Sole traders and partnerships can't claim.
What you’ll need
- Records of the project and the scientific or technical problem
- Costs (staff, materials, software)
- Claim notification and additional information forms
How to apply
- Tell HMRC you intend to claim (claim notification) if needed
- Submit the additional information form
- Claim on your Company Tax Return
Normal farming improvements don't count; it must be real R&D. Rules apply to accounting periods from 1 April 2024.
Similar schemes
- Growth Guarantee Scheme (government-backed business lending) OpenBritish Business Bank, through accredited lendersThe government guarantees part of a loan, overdraft, asset finance or invoice finance from an accredited lender, which can help a farm business borrow when it might not otherwise get finance.
- Scottish Broadband Voucher Scheme OpenScottish Government (R100 programme) · Closes 20 November 2026A voucher towards getting a faster broadband connection installed at a home or business with slow broadband and no faster connection planned.
- Sustainable Agriculture Loan Scheme OpenDevelopment Bank of Wales, for the Welsh GovernmentLow-interest loans for on-farm renewable energy, energy efficiency and storage, slurry and nutrient management, and farm infrastructure and equipment.
- Workplace Charging Scheme (EV chargepoints) OpenOffice for Zero Emission Vehicles (OZEV), run by DVLA · Closes 31 March 2027A voucher towards buying and fitting electric vehicle chargepoints for staff or farm fleet vehicles. You get a voucher code and give it to an authorised installer, who claims the money.
- 40% first-year allowance Open all yearHMRCDeduct 40% of the cost of new main-rate plant and machinery from profits in the first year, with the rest claimed over later years.
- Annual Investment Allowance (AIA) Open all yearHMRCDeduct the full cost of most machinery and equipment (tractors, kit, many fixtures) from your profits in the year you buy it, so you pay less tax.
Checked against the official pages on 29 October 2026. Sources: 1, 2. Always read the official page before you apply.