R&D tax credits explained
Research and development (R&D) tax credits are a valuable government tax relief that rewards UK companies for investing in innovation.
- Companies that spend money developing new products, processes or services; or enhancing existing ones, are eligible for a cash payment and/or corporation tax reduction.
- R&D tax credit rates are the equivalent of up to 33p for every £1 of qualifying expenditure.
- They can be used as an alternative to innovation grants for research and development funding. Sometimes they can complement them too.