Research & Development (R&D) Relief, Creative Industry Reliefs and Patent Box relief provide excellent incentives and rewards for businesses across a range of sectors.
Statistics show that these reliefs, particularly creative industry reliefs, and patent box are quite often overlooked by companies and their advisers, predominantly due to a lack of awareness of what constitutes qualifying expenditure, resulting in companies missing out on substantial claims.
You may be able to claim for more than one relief at the same time achieving greater savings.
R&D tax relief rewards UK companies for investing in innovation. A generous cash tax benefit of up to circa 25% of qualifying R&D spend can be claimed from HMRC.
There is great scope for identifying R&D in any sector, from construction to food, to distribution to retail, although care needs to be taken and it is important especially since 2023 to seek professional advice.
Broadly speaking, if your company has attempted to resolve scientific or technological uncertainties, then it may be carrying out qualifying R&D activity regardless of its size and the sector it operates in. This could include:
If you would like to discuss a possible R&D claim, please do get in touch.
The UK offers several tax relief schemes aimed at providing corporation tax relief across different areas of the creative industry. For example, film tax relief supports the production of culturally British films, providing a cash rebate on qualifying production expenditures. Similarly, the High-end Television Tax Relief and Video Games Tax Relief offer tax incentives to encourage investment and production in these sectors. Other notable reliefs include theatre tax relief and Museums and Galleries Exhibition Tax Relief.
We are happy to assist with any of the above.
Patent box relief is designed to encourage the development, marketing and retention of innovative products within the UK economy.
The patent box regime provides for a 10% rate of corporation tax for relevant qualifying profits.
If your business is the owner or licensee of patented technology which has been granted a UK patent by the UK Intellectual Property Office (UKIPO) and which has not expired, please contact us and we can advise you on a potential claim.
The most common include Research & Development (R&D) tax relief, Patent Box, and various Creative Industry Reliefs such as Film, Video Games, and Theatre Tax Reliefs. Each is designed to reward innovation and investment in development and creativity.
Yes, in many cases, a company can claim more than one relief at the same time. For example, a business developing new technology for a video game may qualify for both R&D and Video Games Tax Relief. It’s important to assess each project carefully to maximise your claim.
If your company is working to resolve scientific or technological uncertainties, whether by creating something new or improving existing products or services, you may qualify.
If your company owns or licenses patents and generates profits from patented inventions, Patent Box can reduce corporation tax on those profits to just 10%. It’s a valuable incentive, but requires careful planning to ensure eligibility.
