R&D – contracted out and subsidised R&D – HMRC update following recent cases

HMRC have provided an update on their position following the First-tier Tribunal (FtT) decisions on the Collins Construction Ltd (CCL) and Stage One Creative Services (SOCS), cases in which the Tribunal found in favour of CCL and SOCS. HMRC say:

We have been considering the outcome of the cases and HMRC has decided that we will not be appealing the decisions.

We appreciate that you and your members/clients will be seeking clarity on the impact the FtT’s decisions will have on open enquiries, appeals and other claims that potentially engage the
subcontracted R&D and subsidised expenditure issues. We are now considering the wider impacts these decisions have on such claims and aim to publish further guidance on this in February 2025. We will also make contact with all customers with existing enquiries in January 2025 to update them about next steps.

We are grateful for your patience while we consider this outcome and will provide further updates at the earliest opportunity. Please do share this [message] with those in your network who may be interested.