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Research and development for partnerships

Q: Q My client is a partnership and has spent money on qualifying R&D, are partnerships able to get R&D relief?

A: Research and development tax credits can only be claimed by companies which are liable to UK Corporation Tax.

Limited Liability Partnerships (LLPs) do not pay UK Corporation Tax and as a result they usually cannot claim R&D tax credits, however if your partnership has a corporate partner, that corporate partner will be subject to Corporation Tax on its share of profits from the partnership. Therefore it may be able to benefit from R&D tax credits for R&D activities carried out by the partnership, in proportion to your partner profit-share.