Business Tax- Post 01/04/2024 R&D SME and RDEC – Intensive tax credits (Box 653)
Article ID
business-tax-post-01-04-2024-rd-sme-and-rdec-intensive-tax-credits-box-653
Article Name
Business Tax- Post 01/04/2024 R&D SME and RDEC – Intensive tax credits (Box 653)
Created Date
16th October 2025
Problem
Resolution
From 2025 new BT rules for R&D and RDEC With effect from 01/04/2024 the SME and RDEC scheme’s were merged and to be in a position to claim R&D intensive relief the company must satisfy the intensity conditions. If they do not then this relief is not available to them. There is no longer 10%/14.5% under this regime. This may help https://www.gov.uk/guidance/research-and-development-rd-tax-relief-the-merged-scheme-and-enhanced-r…. The screens in BT are now updated to meet HMRC rules – see below.
Research and Development tax relief: the merged scheme and enhanced intensive support – GOV.UK. Find out if you can claim under the merged scheme R&D expenditure credit (RDEC) and enhanced R&D intensive support (ERIS) for accounting periods beginning on or after 1 April 2024. There are now three unique rows on the left side when you open the R&D screen.
If you enter and claim the ‘Enhanced R&D Intensive Relief’ entry – it may also auto tick boxes 650 and 653 and if there is a credit claim fill in 875 (dependent on HMRC rules) Box 653 should be ticked in accordance with HMRC rules if you are making a claim R&D intensive.
E.g- the R&D SME individual ‘Intensive’ (pre 4/2024) box has been removed and is now part of the ‘Enhanced R&D Intensive relief’ option on the left side – so theres no need for its own intensive box – check if your company can claim it.
When there is a credit claim etc then boxes 650/653 are automatically ticked if its a small/medium company
RDEC credit claim and 880 – If the RDEC expenditure entry creates a Available/Payable Credit claim then it may show in box 880 (Dependent on HMRC rules). If you entry does meet the HMRC credit claim rules, but Box 880 is empty, then remove the RDEC expenditure entry and ok. Go to ‘additional information’ tab and UNTICK ‘exempt from restriction’. Go back to RDEC – add back in expenditure entry and save. Now run the CT600 and check 880 is populated and the tax calc, you will need to review the HMRC rules if ‘exempt from restriction’ should be ticked or not.
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