Deep Tech R&D Tax Credits

Deep tech businesses often involve developing advanced technologies and solving complex scientific challenges to drive innovation across emerging industries. Here, we explore how R&D applies across the sector and the areas where you’ll find R&D within the industry to help you understand if you could be eligible.

Understanding R&D within the Deep Tech Sector

Industries in Deep Tech

Example Qualifying Activity

DSIT Guidelines Within Deep Tech

Case Studies

Managing Enquiries

Industry Whitepapers

INTRODUCTION

Understanding R&D within the Deep Tech Sector

There is a strong and well-established link between R&D tax relief and the deep tech sector. Many projects are well suited to the scheme, as they aim to achieve genuine advances in science or technology by resolving uncertainties that cannot be readily overcome by a competent professional.

However, compliance is rigorous, and companies must ensure their claims are carefully prepared, clearly articulated, and able to withstand HMRC scrutiny.

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Advanced & quantum computing Develops new computing architectures, algorithms, and hardware to solve problems that are too complex for conventional systems.

AI & machine learning focuses on building models and systems that can learn from data, automate decisions, and improve performance over time.

Biotechnology Applies biology, chemistry, and engineering to areas such as drug discovery, diagnostics, gene editing, and synthetic biology.

Robotics & automation Researches machines and control systems that can perform tasks with greater speed, precision, and autonomy.

Advanced materials & manufacturing Creates new materials and production methods that improve strength, efficiency, performance, or scalability.

Sustainable energy and clean technologies Works on technologies such as batteries, hydrogen, carbon capture, and renewables to reduce emissions and improve energy systems.

Examples of R&D activity in Deep Tech:

Quantum Computing &
New Computing Paradigms
The development of quantum hardware and addressing technological uncertainties in this field, such as qubit stability, represent one of the frontiers of R&D.
Materials & Semiconductor Research
The evaluation of new substrate materials, such as gallium nitride, and its applications, the development of new doping processes, are all examples of furthering knowledge and therefore would be claimable under the R&D scheme.
System Integration
The combination of new chips, sensors, firmware, and communication protocols into complex systems can result in technological challenges, and the work to combine these components involves an iterative and design process to ensure the particular properties and parameters of a system are met.

New Testing & Validation Methods
Creating new testing protocols, simulations, and validation methods to predict device behaviour under conditions ranging from normal to extreme.
Novel Chip Architecture
The development of new microprocessors and integrated circuits usually must meet strict parameters for energy use, speed, cost, and size.
Advanced Fabrication Processes
The development or improvement of printing techniques to achieve smaller node sizes or increase yields is a significant challenge for microprocessor performance, especially as node sizes shrink.

This is not an exhaustive or definitive list. It should be considered a starting point only. Every project must be evaluated individually based on its unique technical challenges and merits.

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