Question to the Ministry of Defence:

To ask the Secretary of State for Defence, with reference to page 43 of his department’s Defence Industrial Strategy, published 8 September 2025, what progress has been made on amending current SME non-disclosure agreements.

The Ministry of Defence, through Commercial X, has been working with HMRC to help defence SMEs better understand and access R&D tax relief. Engagement with SMEs identified the complexity of the schemes (including misconceptions regarding the extent to which information can be shared with HMRC in support of R&D tax relief claims), uncertainty regarding eligibility criteria, and navigating the application process as key barriers to uptake.

In response, Commercial X worked with HMRC to co-create a simple guide to help businesses determine whether they may be eligible to claim R&D tax relief, available at Outline of R&D tax reliefs and the key qualifying criteria - GOV.UK

Commercial X and HMRC continue to work together to identify further opportunities to increase SME awareness and uptake of R&D tax relief in the defence sector.