{"id":1840,"date":"2025-10-31T10:17:41","date_gmt":"2025-10-31T10:17:41","guid":{"rendered":""},"modified":"2026-07-26T16:24:05","modified_gmt":"2026-07-26T14:24:05","slug":"how-to-claim-rd-tax-credits-for-failed-research-and-development-projects","status":"publish","type":"article","link":"https:\/\/leyton.com\/uk\/insights\/articles\/how-to-claim-rd-tax-credits-for-failed-research-and-development-projects\/","title":{"rendered":"How to claim R&D Tax Credits for failed research and development projects"},"content":{"rendered":"\t\t
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Not every research and development (R&D) project goes to plan.<\/p>\n

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Failure or abandonment is very common. In fact, in the pharmaceutical industry<\/a> the global success rate for R&D projects is as low as 7%, according to IQVIA\u2019s\u202fR&D Global Trends in R&D 2025<\/em><\/a>\u202freport. <\/p>\n

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Some projects don\u2019t meet their intended goals, others are aborted; perhaps because they\u2019ve become scientifically or technically unfeasible, or because costs have spiralled to the point where carrying on is no longer commercially worthwhile.  <\/p>\n

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Fortunately, the UK\u2019s R&D tax relief scheme recognises that failure can be an integral part of the innovation process. Regardless of whether or not your R&D project was successful, you may still be able to claim R&D Tax Credits<\/a>, as long as you\u2019re able to meet HMRC\u2019s definition of R&D. To do this, your project must have at least aimed<\/em> to achieve an advance in science or technology with an element of uncertainty. In other words, it\u2019s the attempt that matters and not whether you were successful.   <\/p>\n

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Below, we explain everything you need to know about claiming for failed or abortive R&D projects. <\/p>\n

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Below, we drill into HMRC\u2019s Research and Development Tax Credits Statistics: September 2025 report, which helps to reveal the health of innovation investment in the UK.<\/p>\n

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Can you claim R&D Tax Credits for failed projects?<\/h2>\n

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The short answer is yes (as long as there was qualifying activity before the project ended).<\/p>\n

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HMRC\u2019s guidelines on the Meaning of research and development for tax purposes<\/a> are very clear: \u2018Even if the advance in science or technology sought by a project is not achieved or not fully realised,\u202fR&D\u202fstill takes place.\u2019 As well as this, the official Research and Development Manual<\/a> has a section on abortive projects, clarifying that \u2018Scientific or technological planning activities associated with projects which are not taken forward… are still R&D.\u2019 <\/p>\n

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What counts as a failed R&D project?<\/h2>\n

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Any project that you\u2019ve worked on where the outcome didn\u2019t fully meet your original goals might be called \u2018failed\u2019 R&D.<\/p>\n

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For example:<\/p>\n

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