Quick answer: Technology Readiness Level (TRL) is a nine-point scale describing the maturity of a technology, from TRL 1 (basic principles observed) to TRL 9 (system proven in an operational environment). It originated at NASA and is used by Innovate UK and industry. TRL is not a statutory UK tax test, but can be a useful shorthand in R&D claim narratives.
What is Technology Readiness Level (TRL)?
Technology Readiness Level, abbreviated TRL, is a nine-point scale that describes the maturity of a technology, originating from NASA in the 1970s and now widely used by Innovate UK, the European Commission and industry. TRL 1 represents basic principles observed and TRL 9 represents actual system proven in an operational environment. The scale is not statutory in UK tax law but is sometimes useful in R&D tax relief narratives to position where qualifying work sits on the development pathway.
How does HMRC treat Technology Readiness Level?
HMRC does not use TRL as a statutory test for R&D tax relief, but the scale is compatible with the BIS Guidelines' view that R&D can occur across discovery, development and late-stage engineering. CIRD81300 refers generically to the range of activity covered. Innovate UK applies TRL formally as part of competition eligibility, which can be relevant where grants interact with a claim.
What does TRL look like in practice?
A deep-tech SME describes its current project as moving from TRL 4 to TRL 6, covering component validation in a relevant environment through to system demonstration in a relevant environment. The narrative uses TRL as a shorthand for the work's maturity, while the underlying R&D test is still the BIS Guidelines' advance-and-uncertainty criterion. See eligible R&D activity for the wider boundary HMRC applies when assessing qualifying work at any TRL stage.
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Frequently asked questions
TRL is a nine-point scale describing the maturity of a technology, from TRL 1 (basic principles observed) to TRL 9 (actual system proven in an operational environment). It originated at NASA in the 1970s and is now used by Innovate UK, the European Commission and industry.
No. TRL is not a statutory test for UK R&D tax relief. HMRC's test remains the BIS Guidelines' advance-and-uncertainty criterion, though TRL can be a useful shorthand for describing where qualifying work sits on the development pathway.
Yes. Innovate UK applies TRL formally as part of competition eligibility, which can be relevant where a grant interacts with an R&D tax claim for the same project.