Definition
Enhanced R&D Intensive Support, known as ERIS, is a targeted relief for loss-making UK small and medium-sized enterprises that are R&D-intensive, defined as those whose qualifying R&D expenditure is at least 30% of total expenditure in the accounting period. For accounting periods beginning on or after 1 April 2024, ERIS gives a payable credit rate of 27p per £1 of qualifying expenditure, compared to approximately 16.2p per £1 under the merged scheme for loss-making companies. The intensity threshold was initially 40% before being reduced to 30% from 1 April 2024.
How HMRC defines it
ERIS is legislated in Chapter 2 of Part 13 of the Corporation Tax Act 2009 as amended by Finance (No. 2) Act 2023. HMRC guidance is at CIRD90700 of the CIRD Manual. The intensity threshold, total expenditure definition and connected-company aggregation rules are set out at CIRD90720 and CIRD90740.
Practical example
A pre-revenue biotech SME has total expenditure of £1,200,000 in its year ended 31 March 2025, of which £500,000 is qualifying R&D. The intensity ratio is 42%, above the 30% threshold, so the company qualifies for ERIS. The 27% payable credit on £500,000 of qualifying spend produces a cash benefit of £135,000.