R&D First-tier Tribunal (Tax) – summary of decisions and insights

What is the First-tier Tribunal (Tax) or FTT?

First-tier Tribunals deal with disputes in various, diverse areas of the law. The tax tribunal is responsible for handling appeals against some decisions made by HMRC. The tribunal is independent of the government and HMRC and will hear both sides of the argument before making a decision. At Source Advisors we are particularly interested in their decisions when they impact R&D tax relief.

How often is there a FTT into R&D tax relief?

In the first 20 years of the R&D tax relief schemes in the UK only a handful of R&D cases were heard by FTTs. However, since 2020, and the increased scrutiny of R&D, we have seen the number rise with six FTT decisions, involving R&D tax relief, published in 2024. Each case has something to tell us about how HMRC will be applying the rules.