The UK has some of the most effective tax reliefs for this kind of expenditure in the form of R&D tax credits – under approved Government legislation.
Companies can claim them if they are actively involved in research and development. This includes the innovation, improvement or development of a process, product or service.
R&D includes……gli accountnt audit……..and any sector from life sciences and pharmaceuticals, to energy, renewables or food technology.
SMEs performing any activities that fall within the tax definition of research and development, can claim R&D tax reliefs and be allowed to enhance their qualifying expenditure by 130% ( as well as having the option to convert tax losses created by the relief into cash).
Large companies benefit of a 30% enhancement to qualifying costs (alternatively, they can elect for a 11% tax credit in their accounts that can trigger a tax repayment even in the event they have not paid any corporation tax).