How does Research and Development Relief work with companies contracted by the MOD?
I've been looking at R & D relief in my tax studies as well as on HMRC and I have a client who wishes to make use of it if possible.
It's a small company that does research and development on various technologies to do with noise and vibrations with boats. For the most part from what I can tell, they meet the criteria for costs involved and trade, but I'm concerned with the criteria relating to subsidised research and subcontracting.
The director has told me that the company is been employed or contracted or something like that by the Ministry of Defence. Now this means that effectively I suspect that money would be received from them for the research. I do not know at this point whether the intellectual rights vest in the MOD or the company, but I believe it's the latter.
Can anyone advise me on what I should be looking out for when deciding whether this company has any chance of claiming R & D relief when working with the MOD?