If technology and creativity are at the heart of what your business does PKF Francis Clark can help you identify and obtain the most suitable reliefs available, equalling up to a third of the associated costs.
Businesses that qualify for tax relief could be involved in:
- Life Sciences & Healthcare
- Food & Drink
- Software Development
- Design & Manufacturing
- Creative Enterprises such as Film, Television, Animation and Video Gaming
For more information download our Research & Development Tax Relief brochure, which outlines what is eligible and how it works.
What are Research & Development and Patent Box Tax Reliefs?
It is a common misconception that research & development (R&D) is only carried out by scientists in white coats, engaged in ‘blue sky’ research. The reality, is that it is much broader in scope and extends to almost any industry sector. The official guidelines on the definition of R&D for tax purposes are fairly comprehensive but can be distilled into some key criteria.
R&D for tax purposes takes place when a project seeks to achieve an advance in science or technology. The activities which directly contribute to achieving this advance in science or technology through the resolution of scientific or technological uncertainty are R&D.
The patent box regime was introduced in April 2013 for UK companies with profits from exploiting certain qualifying intellectual property (IP) rights, generally UK and EU patents.
The relief provides an effective 10% tax rate on qualifying profits. The relief was phased in over a four year period with full relief becoming available from April 2017.
With UK corporation tax rates reducing, currently at 19% but expected to reduce to 17% in 2020, the overall benefit of the regime is diluting. However significant savings are still available for many companies, with claims being very much worthwhile.