What impact will the Autumn Budget have on R&D tax reliefs?

After months of anticipation, the Autumn Budget has finally arrived.

While the long-term impact of the announcements remains to be seen, businesses that conduct R&D could stand to benefit.

From the potential of more investment to new compliance measures, the Chancellor has once again signalled a commitment to advancing innovation in the UK.

It is time to unpack the Autumn Budget and determine what is in store for R&D tax relief claims.

What was announced about R&D in the Autumn Budget?

Depending on where businesses operate, there is a chance that they may benefit from the targeted R&D investment that was announced in the Autumn Budget.

Northern Ireland, an area that saw a sharp decline in R&D in the last round of statistics, is set to receive funding for an R&D centre that should help innovative businesses complete their advances more efficiently.

Similarly, a number of Scottish businesses stand to directly benefit from R&D support, which could in turn improve the infrastructure in the country to pave the way for additional advances.

Wales is also in line to experience a boost in services that could further facilitate R&D with investment in AI Growth Zones and other vital pieces of infrastructure that could also be promising for innovative businesses.

Previously overlooked regions of England are also set to receive investment and may benefit more if new devolved authorities commit to greater R&D investment.

Combined across the UK, the Chancellor has committed to increasing R&D spend to £22.6 billion by the 2029-2030 tax year.

Part of this will come in the form of new grants that should be leveraged by eligible innovative businesses, but some of it will come in the form of R&D tax reliefs.

What is changing with R&D tax reliefs?

While much of the hype around R&D centred on the investment that the Government announced, there has been an indication of what may be coming for R&D tax relief claims.

The Government intend to pilot a targeted advance assurance service from spring 2026, which is designed to provide clarity for SMEs ahead of filing R&D tax relief claims.

As of yet, it is unclear how this will manifest and the implementation will determine whether this helps or hinders compliance.

If the system is too vague, it may cause issues similar to the online checker that was recently launched by HMRC.

A lack of understanding of R&D tax relief claims can result in false positives and businesses proceeding to submit poorly managed claims based on ineligible work.

If the system is more stringent, it could improve compliance, but introduces a question of efficiency.

It seems unlikely that the advanced assurance system would replace any of the administrative tasks that are required for submitting R&D tax relief claims.

While businesses may know that the work they are doing counts as R&D, it raises questions of what will happen if the project shifts direction and how any assurance would align with the final technical narrative.

It is likely to remain more efficient and beneficial to seek professional support from R&D tax consultants prior to working on an R&D tax relief claim.

This provides the additional benefit of having a flexible system where any changes to the project can be checked for eligibility and the claim itself can be fully compliant.

We will watch the pilot with great interest to determine its overall effectiveness and will continue to advise on best practice for R&D tax relief claims.

Ultimately, we are on hand to help businesses and accountants make the most of the opportunities that are coming from the investment in R&D.

Speak to our team today to prepare for the future of R&D in the UK!

Adam Bointon

Adam Bointon is a Technical Director specialising in R&D Tax Credits for SMEs in manufacturing and software sectors. With over 15 years’ experience, he works closely with businesses to identify qualifying R&D activities and prepare clear, compliant claims. He combines technical expertise with a strong understanding of economics and finance to support successful outcomes. Adam also contributes to industry webinars and CPD sessions, sharing insights on R&D tax relief and HMRC requirements.