R&D Tax Credits and CBILS


R&D Tax Credits and CBILS

R&D (Research and Development) Tax Credits and CBILS (Coronavirus Business Interruption Loan Scheme) are classed as state aid.  Under state aid rules a business is only able to receive one form of state aid for a project.  

This appears to state that if a CBIL is received by a business to help finance a specific project then that project is not eligible for future R&D tax credits (or at least SME R&D tax credits). It may still be eligible for RDEC.  However, if the CBIL is used for general business purposes (which seems more likely in most cases) then a project receiving R&D tax credits should still be eligible to receive them in the future.  

It should be noted that HMRC have said they will be monitoring claims as they come which shows the answer is not black and white and further guidance is likely to be produced in due course.  

Please talk to us about R&D we have helped several clients with these sorts of claims.

Take care, and stay safe.