Innovation Taxes were a focus again in this year’s Autumn Budget, but in an area where more stability and certainty is needed, we’re pleased to see there were no changes to the merged R&D scheme or the enhanced support for R&D intensives.

That means the core reliefs stay the same. Likewise, Patent Box relief remains unchanged.

We welcome HMRC’s continued efforts to ensure that R&D tax relief reaches the businesses that are entitled to it, while providing greater certainty over eligibility and the level of relief available. These measures are vital for fostering innovation and supporting growth across the UK.

In response to stakeholder feedback, HMRC will launch a limited pilot of a new targeted advance assurance service in Spring 2026. This pilot aims to make assurance more accessible and focused, particularly on complex or high-risk aspects of claims. Businesses will be able to seek clarity on key issues such as:

• whether a project meets the definition of R&D for tax purposes;
• qualification of overseas expenditure;
• which party can claim relief for contracted-out work; and
• exemption from the PAYE/NICs cap.

We look forward to hearing more details of the limited pilot and will work alongside ICAS to provide our feedback on any further measures proposed. 

Get in touch

If you would like to discuss any R&D or Patent Box support that you might need, please don't hesitate to get in touch with me at andrew.mcmillan@jcca.co.uk, your usual JC contact, or another member of our Innovation Taxes team.