Which consumable costs can be claimed?

Consumable costs that are directly used or transformed during a qualifying Research and Development (R&D) project can be claimed. Generally, these costs will include expenses for materials, components, and other consumables that are essential for the R&D process. This may encompass a wide range of items, such as chemicals, materials for use in prototypes, test tubes, and even some utilities such as water, electricity, or gas.

To be eligible for relief, the consumable costs must be directly attributable to the R&D activities and align with the project’s objective of achieving advancements in a field of science or technology.

However, consumable costs incurred in the development of a prototype which the company sells, or intends to sell, to a third-party are excluded. This means that a company will generally be unable to claim consumables used in a “first-of-class” prototype that is sold to a customer.