R&D Tax Credits

Research and Development (R&D) Relief for Corporation Tax (“R&D Tax Credits”) is a Corporation Tax relief that may reduce your business’ tax bill. The R&D relief is only available if your business is liable for Corporation Tax.

Two schemes are available for claiming R&D relief, depending on the size of your business:

  • The Small or Medium-sized Enterprise (SME) Scheme; and
  • The Large Company Scheme

The SME Scheme

The tax relief on allowable R&D costs for the SME scheme is 225%. Therefore, for each £100 of qualifying costs, your business could have the income on which Corporation Tax is paid reduced by an additional £125 on top of the £100 cost. In some instances, the relief may include a payable credit.

The Large Company Scheme

The tax relief on allowable R&D costs for the Large Company scheme is 130%. Therefore, for each £100 of qualifying costs, your business could have the income on which Corporation Tax is paid reduced by an additional £30 on top of the £100 cost. If instead there is an allowable trading loss for the period, this can be increased by 30 % of the qualifying R&D costs.

Contact us if you have a question, or if you would like to find out more about Research and Development (R&D) Relief.

Note that this does not constitute tax or financial advice, which we are not qualified to provide. If R&D Tax Credits are of interest to you, we recommend that you discuss this with your accountant. Alternatively, we would be pleased to put you in touch with a tax accountant that has specialist knowledge of R&D Tax Credits.

Contact Us

Phone: +44 (0) 141 212 7070

Fax: +44 (0) 141 427 6299

Email: mail@lawrie-ip.com


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