Research and Development and Patent Box

Companies involved in qualifying R&D activity may claim additional tax relief on certain costs incurred directly in the R&D process. There is a complex set of conditions to consider in deciding whether expenditure qualifies for the additional tax relief, and the rate at which relief is given is dependent on various factors. Lossmaking companies, both SME and large, may be able to elect to surrender losses in order to secure a cash payment from HM Revenue & Customs. A common misunderstanding is that this relief is just for pure scientific research in a lab, this is not the case. Other development such as design, engineering, software etc. can also qualify for R&D tax relief.

In the area of R&D tax relief we can assist with:

• Establishing whether projects and expenditure qualify for relief
• Confirming the rate at which relief should be claimed
• Assisting you in identifying qualifying projects
• Preparation and submission of claims to HM Revenue & Customs and dealing with any subsequent queries
• Securing payments / repayments of corporation tax where appropriate
• Working in partnership with you to maximise claims thereby reducing the overall costs of the project to you

Additionally, companies may also have significant investment within Intellectual Property, and our team is experienced in identifying any tax savings to be attained by virtue of utilising the Patent Box reliefs available.

In the area of PB we can assist with:

• Identification of profit arising from qualifying IP rights which will be subject to an effective tax rate of 10%
• Establishing whether the PB regime is relevant to any corporate disposals thereby minimising corporation tax exposure