As R&D tax consultants, we like to make innovative businesses, and the accountants who support them, aware of the scope of assets that are available to assist with seeking new advances.
One of the latest initiatives that is being introduced by the Government is the Life Sciences Transformational R&D Investment Fund (TRIF) Pilot.
We want to highlight the qualifying criteria for the TRIF Pilot and how to make the most of it.
What is the TRIF Pilot?
The TRIF Pilot is a £50 million capital grant opportunity and it operates in a different capacity to R&D tax relief claims.
Rather than retroactively claiming back funds to facilitate future innovations, the TRIF Pilot can be used to support large scale projects as they happen.
To ensure that R&D is beneficial to the UK economy, the awarding of the fund will be prioritised based on the economic benefits of the project.
Who is eligible for the TRIF Pilot?
Unlike with R&D tax relief claims, the focus of the TRIF Pilot is limited to only those working within a specific sector.
To qualify, an innovative business must:
- Be a UK-registered and wholly private sector business
- Operate as a product developer, Contract Development And Manufacturing Organisation (CDMO), or generics manufacturer
- Provide two years of audited accounts for the applicant company or parent entity. If unavailable, you must demonstrate that the remaining project funding has been secured
- Show a track record of successfully developing or manufacturing medicines or medical devices, either in the UK or internationally
As well as ensuring that the business itself qualifies for the TRIF Pilot, there are also criteria determining project eligibility.
The R&D project must:
- Have a total cost (including eligible capital and non-capital costs) of at least £100m
- Be located in the UK
- Be primarily a capital investment
- Be a single company investment (as opposed to forming a partnership between companies or other types of organisations)
- Be dependent on the grant to proceed. Projects that would otherwise not occur, be delayed (by three years or more), scaled down, or relocated overseas without the grant may be eligible
If the work is conducted in human medicines, medical diagnostics, or MedTech products then it is more likely that the fund will be awarded.
Are projects that get the TRIF Pilot eligible for R&D tax relief?
The way that R&D tax relief claims intersect with other grants can be complicated so it is best to seek professional advice.
Grants can, in some instances, reduce the ability to claim R&D tax relief but they do not automatically disqualify projects.
It is possible that some aspects of the R&D may still qualify for R&D tax relief claims even if the TRIF Pilot is used.
This is due to the TRIF Pilot not necessarily covering all of the funds required to undertake the R&D so funds that are put into the project may still be done at risk to the business.
We want to ensure that innovative businesses are making the most out of the opportunities that are available to them.
While this is a fund that only applies to work done in a specific sector, we are always looking to assist innovation wherever it is found.
