What is R&D relief worth?

The rate of relief is constantly changing and it is always worth looking out for changes to these in the Chancellor’s main budget speech and/or follow up budget press releases.

The current rate which has been effective since 1 April 2015 is 230%. This means that for every £100 of expenditure on qualifying R&D you get additional relief of £130 on top of the £100 to reduce profits chargeable to corporation tax.

I haven’t made any taxable profits yet, how can claiming help us?

Assistance is available for loss making companies carrying out qualifying R&D because losses can be surrendered in exchange for a repayable tax credit.

Again the rate of repayable tax credit is constantly changing but has been 14.5% since 1 April 2014. The tax credit rate has been reducing in recent years largely due to the fact that corporation tax rates in general have been reducing.

More on R&D tax relief…

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