The UK’s R&D tax regime provides valuable relief for companies investing in qualifying research and development. There are two main schemes, depending on company size and funding status:
Smaller pharmaceutical firms (fewer than 500 employees) may claim under the SME scheme:
Note: receipt of grant funding may push an SME into the RDEC/Merged Scheme.
For larger pharmaceutical companies, or SMEs in receipt of notified grants, the R&D Expenditure Credit (RDEC) or new Merged Scheme applies:
Qualifying costs include salaries, externally provided workers, consumables, software, and clinical trial expenditure.
Grants can provide up to 70–100% of eligible costs depending on the nature of the applicant and the technology readiness level (TRL).
Pharmaceutical companies often make use of both R&D tax credits and grants. However, care must be taken to:
FI Group helps you structure funding strategically to maximise the overall financial benefit while staying compliant.
Even if projects fail or result in negative data, they can still qualify if scientific uncertainty was addressed.
At FI Group, we understand the scientific and regulatory complexity of pharmaceutical R&D. Our services include:
Our meticulous, low-risk approach results in industry-leading claim quality and lower HMRC enquiry rates.
The UK pharmaceutical sector is a global leader in drug discovery, clinical development, and advanced manufacturing. Yet, the path from molecule to market is long and capital intensive. That’s why pharmaceuticals grants and R&D tax relief play a crucial role in supporting innovation across the industry.
FI Group works with pharmaceutical companies at every stage — from early discovery to commercial scale-up — to access funding, reduce tax burdens, and accelerate R&D. With deep technical expertise and a track record in life sciences, we help you navigate the UK’s innovation incentives with confidence.
Whether you’re developing a novel small molecule, a complex biologic, or a new drug delivery method, your project may qualify for R&D incentives if it seeks to resolve scientific or technological uncertainty. Typical qualifying activities include: