What is RDEC?
What is the R&D Expenditure Credit (RDEC)?
The Research and Development Expenditure Credit (RDEC) is a UK government incentive aimed at large companies undertaking eligible R&D projects. Unlike the SME R&D scheme, RDEC is designed for companies that do not meet the SME threshold and provides a taxable credit that is visible “above the line” in financial statements. From 1st April 2023, the RDEC rate increased to 20%, delivering a net benefit of approximately 15% after tax. The scheme plays a key role in boosting innovation investment for larger UK businesses.