Mohammed Mogra shares his surprise at the lack of R&D policy changes in the latest Budget in this quick read.
Mohammed Mogra, Tax Director at Price Bailey, shares his surprise at the lack of R&D policy changes in the Autumn Budget, but provides an update on what SMEs can expect in 2026.
It’s surprising how little attention R&D incentives received this time around. Aside from a small technical tweak to payment mechanisms within groups, there’s nothing new on eligibility or the merged scheme.
Claimants had hoped for changes to the claim notification rules to make the process fairer, but no amendments have been made.
As a result, genuine businesses continue to miss out on relief due to timing issues or lack of awareness of the requirement. It feels like the major reforms are now bedded in, but we’re still waiting on the outcome of the advance assurance consultation for SMEs . More news to come Spring 2026.
R&D: Advance Assurance for SMEs and new payment mechanism update
From spring 2026, a new Advance Assurance Service will give smaller businesses upfront guidance on whether their innovation projects qualify for relief. Alongside this, legislation taking effect from 26 November 2025 will clarify how intra-group payments linked to R&D-style credits (RDEC, AVEC and VGEC) should be treated for Corporation Tax, reducing ambiguity for groups.
Fresh investment and talent initiatives
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