Major Changes to Overseas Costs for R&D Tax Relief UK

In April 2024, the UK will introduce significant changes to overseas costs for R&D tax relief. The new rules will limit the eligibility of expenditure on overseas R&D, focusing more on activities within the UK. As a result, many overseas R&D costs will no longer qualify for tax relief unless specific conditions are met. This shift aims to strengthen domestic innovation and encourage R&D activities in the UK.

Key Changes to Overseas R&D Costs

From April 2024, only R&D costs for activities carried out in the UK will generally qualify for tax relief. This includes costs for UK-based subcontractors, externally provided workers, and direct staff costs involved in R&D. The eligibility of overseas costs for R&D tax relief will significantly reduce. Only a few cases will meet the new criteria for overseas costs.

For companies relying on international R&D, the changes may require adjustments. Businesses will need to reassess their global operations and ensure compliance. In some cases, this may lead to higher costs or the need to bring more R&D back to the UK.

How Apex Accountants Can Help

Apex Accountants can help businesses adapt to these changes in overseas costs for R&D tax relief. Our expert advisors provide the following services:

• Review and Reassessment: We help businesses identify any expenditure on overseas R&D that may no longer qualify. We’ll explore ways to maximise claims based on UK-based activities.
• Strategic Planning: We offer advice on restructuring your R&D activities to comply with the new UK-focused rules.
• Ongoing Support: We keep you updated on changes to overseas R&D tax relief and guide you through adjustments.

Stay Ahead of R&D Tax Relief Changes

Don’t let changes to overseas costs for R&D tax relief affect your business. Contact Apex Accountants today. Our team of expert R&D tax advisors is ready to help you adapt to the new rules, maximise your eligible UK-based costs, and continue receiving support for your R&D efforts. Get in touch with us now!