For expenditure on or after 1 April 2023, the research and development expenditure credit (RDEC) rate will increase from 13% to 20%, the small and medium-sized enterprises (SME) additional deduction will decrease from 130% to 86%, and the SME credit rate will decrease from 14.5% to 10%.

These Autumn Statement 2022 rate changes will be legislated for in the Autumn Finance Bill 2022.

This reform ensures that taxpayer support is as effective as possible, improves the competitiveness of the RDEC scheme, and is a step towards a simplified, single RDEC-like scheme for all, the Treasury said.