Measure
The government will remove the claim notification requirement for R&D tax relief claims and simplify and rationalise the information required in the Additional Information Form (AIF).
Alongside these confirmed changes, the government is consulting on further changes as part of a wider consultation on Corporation Tax simplification. For R&D reliefs, it proposes to explore possible simplification of the R&D intensity ratio for the Enhanced Relief for R&D Intensive SMEs (ERIS), eligibility for the exemption from the PAYE and National Insurance Contributions cap and the going concern requirement. The government will also consider longer-term changes to the whole R&D claims process, potentially including integrating existing forms to reduce duplication and providing functionality for claimants to track claims and tax credit payments.
For patent box, the government will explore simplifying the computation. Areas for consideration include exempting companies with income below a de minimis threshold from certain computational steps, including those relating to the marketing assets return, computational elections and notional royalty calculations; introducing sector-specific percentages for the routine return deduction; and allowing companies to stream income at higher levels than currently permitted. These proposals aim to reduce complexity and administrative burdens.
The changes will affect companies claiming R&D tax relief and patent box. The government estimates that around 26,000 businesses a year will benefit from removing the claim notification requirement and around 40,000 businesses a year will benefit from simplification and rationalisation of the AIF.
The Claim Notification Form requirement will be removed for R&D claims made on or after 1 April 2027. The Additional Information Form will be simplified from Autumn 2027.
On the wider simplification work for both R&D and patent box, the government intends to work with stakeholders between November 2026 and April 2027 to refine the issues and develop potential solutions, before undertaking further technical consultation ahead of a future fiscal event.
The R&D and patent box regimes aim to foster technological advancement, enhance productivity, create high-skilled jobs, support entrepreneurs and boost the global competitiveness of UK businesses. In recent years, the claim notification requirement and AIF have created an additional burden for claimants. The changes should help reduce compliance burdens and streamline the preparation of R&D claims. Similarly, simplification of the patent box computations should help improve compliance, reduce administrative burdens and support access to the regime.