Answers · UK 2025/26
What is the R&D merged scheme rate from 2026?
The R&D merged scheme, introduced for accounting periods beginning on or after 1 April 2024, provides a 20% above-the-line credit (RDEC rate) for all companies. Loss-making R&D intensive SMEs (where qualifying R&D is 30%+ of total expenditure) can claim the Enhanced R&D Intensive Support (ERIS) at 27% credit.
Full answer
The UK R&D Merged Scheme came into effect for accounting periods beginning on or after 1 April 2024, replacing the previous separate SME R&D tax relief and Research and Development Expenditure Credit (RDEC) schemes for most companies. Under the merged scheme, all qualifying companies receive a 20% above-the-line RDEC credit on qualifying R&D expenditure. This credit is taxable, resulting in a net benefit of approximately 16.2% after corporation tax at the 25% main rate (or higher for smaller companies paying 19%). Loss-making R&D-intensive SMEs — where qualifying R&D expenditure represents 30% or more of total expenditure — can instead claim the Enhanced R&D Intensive Support (ERIS) scheme at 27% credit rate, providing a net benefit of approximately 21.87% after tax. Overseas R&D expenditure can be claimed only where it is not possible to undertake the activities in the UK.
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.