Research and Development Allowance (RDA)

What Are Research and Development Allowances (RDAs)?

Research and Development Allowances (RDAs), also known as Research and Development Capital Allowances, allow UK businesses to claim 100% tax relief on qualifying capital expenditure related to R&D. This includes costs for developing or refurbishing R&D facilities, laboratories, IT infrastructure, plant and machinery, and even company vehicles used by R&D staff.

By claiming RDAs, companies can offset their corporation tax liability in full for the year the expenditure occurs—helping to unlock cash flow and reinvest into innovation faster. Unlike standard capital allowances or the Annual Investment Allowance (AIA), RDAs are not capped and can offer significant savings on large capital investments.

Key Benefits of R&D Allowances (RDAs):

✅ 100% tax relief on qualifying R&D capital expenditure in the first year

✅ No upper limit on claimable amounts – ideal for high-value investments

✅ Available for assets not eligible under AIA, such as R&D buildings or laboratories

✅ Particularly valuable for large businesses exceeding their AIA thresholds

✅ Boosts cash flow and supports continued investment in research and innovation

Who Should Consider RDAs?

Businesses that invest heavily in R&D facilities or assets—especially those exceeding the AIA limit—should strongly consider RDAs. Whether upgrading a laboratory, installing specialist equipment, or developing a new R&D hub, RDAs offer an effective way to reduce corporation tax and increase available capital.

If you’d like support with claiming R&D Allowances, simply get in touch using the form at the bottom of the page — our team will be happy to help.