Innovation Grants for AI & R&D Tax for Artificial Intelligence Innovation

What Makes AI Projects Eligible for R&D Tax Relief?

Your AI project may qualify for R&D Tax Relief if:

• It involves creating or improving algorithms or training processes
• The outcome wasn’t readily deducible by a competent professional
• You faced systematic technical uncertainty
• Significant time was spent testing, training, and evaluating models

Qualifying costs can include:

• Staff time (data scientists, engineers, analysts)
• Subcontracted AI research and consultancy
• Cloud and compute costs (for model training and testing)
• Consumables (e.g., energy, software licenses)

FI Group can guide you through eligibility assessment, technical report writing, and submission, all supported by our in-house PhDs and experienced AI consultants.

Combining AI Grants and R&D Tax Credits

Yes, you can use both — but the interaction between the two needs careful handling.

When AI innovation is supported through a grant, it may affect your eligibility for SME R&D Tax Relief (especially if the grant is notified state aid). However, you can still usually claim via the RDEC or merged scheme. FI Group ensures:

• Accurate apportionment of grant and self-funded costs
• Claim alignment with HMRC guidance
• Optimal sequencing to avoid double funding breaches

Our combined approach means you maximise non-dilutive support without triggering compliance risks.