Key findings from HMRC's annual report for R&D tax relief (2025-26)

The latest data (2025-26) from HMRC’s annual report and accounts provides an updated look at UK Research and Development tax relief, revealing the amount of expenditure on R&D tax reliefs, processing times and how compliance activity has shifted over the past year.

With R&D reliefs designed to support innovation and investment in new technology, these figures show how the regime is being used in practice and where HMRC is focusing its scrutiny. How much is spent on R&D reliefs? How quickly are claims processed? And what does the latest error and fraud estimate mean for businesses preparing to submit their own claims?

The latest HMRC figures highlight the continued importance of R&D tax relief as a driver of innovation across the UK economy. With £8 billion of support provided in 2025–26, the regime remains a valuable incentive for businesses investing in new technologies, products and processes. At the same time, HMRC continues to strengthen compliance activity, making it more important than ever for businesses to ensure claims are robust, well evidenced and fully aligned with the legislative requirements.

Gemma Thake, Tax Partner

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Key findings from HMRC’s annual report for R&D tax relief (2025-26)

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