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In DNAE Group Holdings Limited v HMRC [2021] TC08227, the First Tier Tribunal (FTT) found that the claimant company was a Small or Medium-sized Enterprise (SME) for R&D relief. Its main investor was a Venture Capital company so it did not have to include the investors’ assets and employees when assessing its own size.

There are two schemes for claiming Research and Development (R&D) relief, depending on the size of the company:

DNAE Group Holdings Limited (DNAE) specialised in research and development into 'point of care' solutions for DNA Gene 6 sequencing detection. It claimed R&D tax credits under the SME scheme.

The FTT allowed the appeal:

Useful guides on this topic

R&D Tax Relief: Overview
What is R&D Relief? How does it work? Why does the size of the company matter? What is sub-contracted R&D? How do I write an R&D Report?

R&D: SME Tax Credit scheme
What Research & Development (R&D) schemes are available for small and medium-sized companies undertaking R&D? How to make an R&D claim? What are the qualifying costs and how much can be claimed?

R&D: 'Large Company' Scheme (RDEC) Guide
What is the R&D Expenditure Credit (RDEC) Large Company Scheme for R&D relief? How does it work?

R&D Zone: Can I claim under SME Scheme or RDEC?
Can I claim under the Small or Medium-sized Enterprise (SME) Scheme or R&D Expenditure Credit (RDEC) scheme?

External link

DNAE Group Holdings Limited v HMRC [2021] TC08227 


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