R&D Laboratories

How R&D tax credits apply to R&D laboratories: experimental development, testing, record-keeping, and compliance.

For R&D tax consultant services and how R&D tax credits work, see our dedicated pages.

R&D laboratories and R&D tax credits: overview

R&D laboratories carry out experimental development, testing, trials, and data generation to achieve an advance in science or technology. Qualifying work can include novel experiments, method development, and resolving scientific or technological uncertainty. R&D tax credits are available where the activities meet the relevant jurisdiction's definition of R&D—typically work that goes beyond routine quality control or standard testing. A research and development tax consultant can help you structure projects and records so your R&D tax claim process stays compliant and defensible. R&D laboratories in the UK, UAE, and Ireland can access research and development tax relief on qualifying expenditure; eligibility and documentation requirements vary by regime.

Key areas for R&D laboratories

Record-keeping and documentation challenges for R&D laboratories

Labs often struggle to distinguish routine testing from genuine R&D and to allocate shared costs (equipment, facilities, staff time) in a way that meets authority expectations. Contemporaneous records that show what was done, why it involved uncertainty, and how much time and cost went into qualifying R&D are essential. Our R&D tax consultant services include documentation systems designed for laboratory environments, so you can capture qualifying activities and costs without adding undue burden. Tax authorities expect evidence that links each cost to specific R&D projects and that the work involved scientific or technological uncertainty.

Compliance considerations

Eligibility and eligible costs (scientist and technician time, consumables, subcontractors, certain equipment and software) depend on the regime—UK, UAE, or Ireland. Understanding how R&D tax credits work in your jurisdiction helps you plan projects and capture relief consistently. R&D laboratories that operate across borders may need to apply different rules for each territory. A research and development tax consultant can help you align your R&D tax claim process with each authority's expectations and avoid double-counting or misallocation.

Typical qualifying activities and costs

New assay or method development, exploratory or hypothesis-testing experiments, characterisation of new materials or compounds, and development of new lab processes or equipment where there is genuine technical uncertainty. Common eligible costs include scientist and technician time, lab consumables, subcontractor costs (e.g. external testing), and certain lab equipment and software used for qualifying R&D. Work that is purely routine QC, standardised testing, or replication of known methods generally does not qualify; the key is demonstrating that the work sought an advance and resolved uncertainty. For more on eligibility, see our pillar page on who is entitled to R&D tax credits.

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