E5. Research and development

- Identifying qualifying R&D

- Must seek to advance overall knowledge or capability of a particular field of science or technology (Guidelines, §§1, 6).

Project

- A number of activities conducted to a method or place to achieve such an advance (M&C, §42(1)).

Existing knowledge

- Refers to publicly available knowledge/capability (Guidelines, §§20, 22).

Advance

- No advance where the uncertainty can readily be resolved by a competent professional.

- Also excludes improvements and fine-tuning which do not materially affect the underlying science or technology.

Real world implementation

Education and information provision not science/technology

- New and innovative methods of providing information/education not included (M&C, §42(2)).

- "The uncertainties and advances to which the appellant and these persons refer are advances in a social science, education, and not in a field of science or technology...Increasing and/or improving the workforce by using innovative ways of educating and training them with existing publicly available knowledge and existing capabilities in the field of metallurgy does not mean that the appellant itself has made an advancement in the relevant field of science itself within the meaning of the Guidelines." (M&C, §42).

Legislation:

Cases:

M&C Educational Training Services Ltd v. HMRC [2025] UKFTT 1506 (TC), Judge Morgan;

HMRC manuals:

Commentary: