Research and Development (R&D) reliefs support companies that work on innovative projects and can be claimed by a range of companies that seek to research or develop an advance in their field. The UK government recognises that encouraging innovation is vital to improving the UK’s productivity, performance and competitiveness. The government therefore actively encourages R&D and recently announced plans to increase investment in R&D to £22 billion a year, as well as raise tax credit from 12% to 13%.
While we still believe that further clarification is required on what activity qualifies for R&D tax relief, real estate & construction is one of the areas where R&D currently thrives. As an industry that is constantly pushing past its innovation comfort zone, it is still surprising that many valuable qualifying projects, activities and expenditures are still not recognised as R&D.
Regardless, it remains a complex area for many businesses and this has caused many to miss out on valuable funding. However, with appropriate expert advice from advisers who understand the various sector landscapes, companies can ensure they make the most of this valuable R&D incentive.
We have a specialist team of scientists, engineers and tax advisers for R&D tax relief, R&D expenditure credit and other innovation incentives. Through our long-standing representation on HMRC’s R&D Consultative Committee, Moore Kingston Smith has played a leading role over the years in the development and interpretation of the R&D tax relief schemes.