The changes will come into force from 1 April 2023 and will affect companies claiming research and development expenditure credit (RDEC) and SME R&D relief, as well as some companies which have made a Patent Box election. HMRC estimates that around 90,000 companies will benefit from the changes, while the cost of the Treasury will be confirmed at the Budget this autumn.

To tackle abuse of the reliefs, in future all claims to the R&D reliefs either for a deduction or a tax credit will have to be made digitally, HMRC confirmed.