The UK’s key aerospace and defence sector is poised to expand.
In aerospace, historically a crown-jewel in UK exports, airlines and passengers are demanding more cost-effective and environmentally friendly journeys. In defence, the government’s plan to increase spending from 2.3% to 2.5% of GDP from April 2027, cements its position as a priority UK growth sector. Research and development will play a significant part – stimulating growth and creating jobs.
For innovative business, there has never been a better time to partner with ForrestBrown. As the UK’s leading tax reliefs and incentives specialist, we ensure maximum value for your investment. Whether you’re an aircraft systems producer, satellite manufacturer or cybersecurity expert, unlock opportunity with innovation incentives including R&D tax relief, grants, patent box and capital allowances.
The value of R&D tax relief in aerospace and defence
If you’re new to R&D tax relief, we can help you review your eligibility for it. If you’re already claiming, we can review your previous claim and existing process, ensuring that your claims are fully optimised while protected from risk. At the same time, we can also assess your eligibility for other innovation incentives, aligning your funding strategy to your business’s needs.
Defence: a priority UK growth sector
The government’s drive to expand our national security capabilities will see the UK spend up to 3% of its GDP on defence in the next Parliament.
Innovation incentives and reliefs will play a key role in supporting those ambitions. From grants and R&D tax relief, to Patent Box relief and capital allowances, discover which innovation incentives your business may be eligible for.
Opportunities for innovation
From materials development to naval architecture; cyber technology to robotics; the varied nature of aerospace and defence means that innovation can be found in an array of projects. Here are just a few examples:
-
Advanced engineering
Developing new technologies in aerospace and defence will likely involve advanced engineering. Examples might include the development and testing of new systems and equipment, or innovative ground trials utilising synthetic environments and simulations. -
Emerging technologies
New technologies might include the development of instruments for fuel measurement. For example, developing analysis methods that can quickly and reliably detect ethanol present in gasoline at extremely low concentrations across a wide range of temperatures. This is vital for light aircraft engines where ethanol is unsuitable. -
Digital transformation
Digital technology innovation and AI are poised to have a huge impact in the defence and aerospace sector. Collating data in real-time from a multitude of sensors, be they fixed or mobile on vehicles, drones and personnel, presenting it in a manageable format and implementing predictive capabilities is driving digital innovation. -
Advanced materials
Aerospace is synonymous with innovative and advanced materials, with improved alloys and associated manufacturing processes being sought to push the boundaries of aircraft and components. Niche research areas exist, such as developing printable conductive inks that offer potential as lightweight and robust heating elements that can efficiently de-ice plane wings.
How ForrestBrown can help
Our multi-disciplinary team of chartered tax advisers, accountants, lawyers, and industry-experienced science and technology specialists bring unmatched expertise to your business to help you secure the funding you’re eligible for.
Our aerospace and defence specialists have deep insights into R&D in the sector, while our tax experts deliver technical advice in plain English to provide you with practical and actionable business outcomes tailored to your needs.
MoD security clearance
Importantly, several members of our team have MoD security clearance and can work with you on sensitive projects. Often, we won’t even need the secret detail of a project to enable us to document your R&D for HMRC; just the nature of the technology used to support it. Your data is then securely stored by us, using our systems and technologies.
Karim Budabuss CEng
Director – Grant Advisory
Karim Budabuss CEng
Director – Grant Advisory
- Grant advisory expert with Big Four experience.
- Significant experience supporting large businesses to access innovation incentives.
- Chartered engineer with the UK Engineering Council.
Expertise & specialisms
- Innovation funding
- Investment incentives and negotiated grants
- Decarbonisation projects
Karim works with large businesses, exploring all elements of the innovation toolkit, from R&D tax relief to grant funding. He takes a forward-looking approach, identifying opportunities which align with client projects and objectives.
Having previously led decarbonisation grant advisory for a Big Four firm in the UK, Karim joined ForrestBrown in 2023. His in-depth knowledge of grants provides further support for the innovative businesses we work with, enabling them to explore a wide range of funding opportunities.
Karim is a chartered engineer and gained more than five years’ experience as an engineering consultant and project manager for major infrastructure clients before specialising in innovation incentives. He has subsequently helped companies access millions of pounds from grant funding bodies such as Innovate UK, the Department of Energy Security and Net Zero, and Scottish Enterprise in sectors including aerospace, energy and manufacturing.
Through this combination of technical and finance expertise, Karim is well placed to advise businesses on their eligibility for innovation funding and the most appropriate projects for which to seek funding support, at the same time contributing to meeting some our biggest societal challenges.
At ForrestBrown, Karim has also supported multinational companies seeking to invest and create jobs in the UK, for example securing government support for the location of new manufacturing facilities.
Katy Long CTA CA
Director
Katy Long CTA CA
Director
- Qualified chartered tax adviser and chartered accountant.
- Experienced working with portfolio of large companies.
- Expert in R&D tax policy and legislation.
Expertise & specialisms
- R&D tax policy
- Overseas R&D rules
- Merged scheme
Beginning her career with a Big Four firm and gaining experience across a range of auditing and tax roles, Katy has specialised in R&D tax relief since joining ForrestBrown in 2019.
During a time of unprecedented change, Katy has led ForrestBrown’s approach to key policy developments including restrictions on overseas R&D activities and HMRC’s introduction of an additional information form. This has included liaising with HMRC, delivering internal training and providing insights to clients.
Clients working with Katy benefit from her commercial mindset and deep knowledge of R&D tax relief, including how it can work alongside other innovation incentives. She works with a range of established SMEs and large businesses in sectors including manufacturing, financial services and aerospace, where she is a trusted adviser on the RDEC incentive.
Katy co-authored the Tolley’s Tax Digest on R&D tax relief and has contributed articles to publications including Taxation and The CFO.
Peter Beavis PhD CSci CChem
Senior Technical Manager
Peter Beavis PhD CSci CChem
Senior Technical Manager
- Highly experienced materials scientist.
- Background in food science, pharma and defence.
- Doctorate in organic chemistry.
Expertise & specialisms
- Materials engineering
- Pharma
- Defence
- Food & drink
Peter’s experience ranges from getting a PhD and MSci in Chemistry and improving confectionery shelf-life to the invention of a patented elastomeric material for improved radiation stability.
His career started with a role as a chocolate scientist at Mars. That was followed by a move to the defence sector, where he finished a nine-year stint as a Senior Materials Scientist at the Atomic Weapons Establishment.
During that period, he authored numerous scientific papers and spoke at international conferences on the synthesis and characterisation of novel polymers and materials. With ForrestBrown, Peter has also been published in The Manufacturer, The Medicine Maker, Interplas Insights, and the Confectionery Production publications.
That scientific and technical capability allows him to quickly understand, challenge and assess clients’ work against the R&D tax credit guidelines. And, it’s seeing the projects companies are able to fund due to the value of their claims – and the excitement they have – that’s driving him.
At ForrestBrown, Peter provides expert peer-to-peer communication for our clients on their technical projects, helping to translate their work into reports for HMRC. Examples of his work include reviewing a claim prepared by a Big Four accountancy firm – and significantly increasing the value of R&D tax relief to their business.
Pete works with our network of associations in the food and drink sector, using his background at Mars as a chocolate scientist to help businesses identify their hidden R&D in this industry. Supporting the activities of our partnerships team, Pete speaks at events, networks with businesses and hosts webinars with industry partners to raise awareness of the value of working with ForrestBrown’s expert multi-disciplinary team to access this valuable incentive.
With an infectious passion for all things science and materials, you can talk to Peter about pharma, food and drink, materials (adhesives, polymers and manufacturing) and engineering sectors.
Robert Lutken MSc
Technical Manager
Robert Lutken MSc
Technical Manager
- Communicates our clients’ scientific and technological projects to HMRC in technical reports.
- Experienced full stack software engineer.
- Masters in computer games development.
Expertise & specialisms
- AR and VR
- App and game development
- Cloud Architecture
- IoT
Rob is an expert software engineer in our sector specialist team. He plays an invaluable role in translating our clients’ highly technical scientific R&D activity into reports for HMRC.
After graduating with a master’s degree in computer games development from the University of South Wales, he worked for a number of years as a full stack software developer for an award-winning digital agency.
With a passion for AR, VR, game and mobile app development, Rob acts as a conduit between our clients’ technical teams and our tax specialists, enabling us to communicate our clients’ complex R&D projects effectively to HMRC.
Rob is always keen to share his knowledge and has delivered Learning Lab presentations to the wider business on a range of topics.
Jayne Stokes FCA
Associate Director
Jayne Stokes FCA
Associate Director
- ACA qualified.
- Former director at a Big Four firm.
- Advises innovative businesses on R&D tax relief and tax disputes.
Expertise & specialisms
- HMRC enquiries and tax disputes
- Accounting
- Chemistry
Jayne is an experienced chartered accountant with Big Four experience, who has worked in both the UK and Middle East. She is a senior adviser in FB Consulting, ForrestBrown’s specialist tax advisory service.
Jayne joined ForrestBrown in 2020 and brings a wealth of experience in leading complex tax advisory projects, which helps her provide invaluable advice to our clients. She also plays a key role in assessing and managing tax risks and leading client relationships with HMRC.
Drawing on her science background, she takes particular interest in the pharmaceutical and medical sectors. In her role with ForrestBrown, Jayne is focused on developing our advisory services to help more businesses across the UK benefit from R&D tax relief. This includes working with clients and accountants to create robust claims and providing strategic advice or specialist support should HMRC open an enquiry.
After completing a Master’s degree in Chemistry from the University of Sheffield, Jayne began her career with Deloitte in 2006. She was based in the entrepreneurial business tax practice and studied for her ACA qualification.
In 2010, she moved to Dubai to help establish Deloitte’s international tax practice for the Middle East region. She managed a diverse portfolio of clients including large multinationals, owner-managed companies and startups.
James Dudbridge LLB
Director
James Dudbridge LLB
Director
- Leads our tax advisory practice, FB Consulting.
- Solicitor specialising in corporate and personal tax.
- Track record of success at first-tier tribunal tax chamber.
Expertise & specialisms
- Complex corporate structures, including international groups
- HMRC disputes including compliance checks and appeals
- UK tax law
James leads our tax advisory practice, FB Consulting, providing award-winning R&D tax relief expertise to businesses and accountants. This can include modelling and forecasting, risk profiling and benchmarking, and advice on compliance and methodology for large corporates.
With a legal background and extensive experience dealing with HMRC, James brings incisive insights to tax disputes, developing strategies to achieve the best possible outcome for clients. For example, he successfully led ForrestBrown’s support for Quinn (London) Limited in a 2021 landmark tribunal case challenging the interpretation of subsidised R&D expenditure.
James and the FB Consulting team provide specialist advice, working alongside a company’s general advisers, including due diligence relating to R&D tax relief pre and post transactions and R&D in complex, international groups.
A solicitor who specialises in tax advice for corporates and individuals, with a focus on cross-border and international issues, James trained and qualified at a top London law firm before relocating to Geneva to help set up the firm’s Swiss office. On returning to the UK James worked in the tax team of a leading Bristol and London-based law firm, before joining ForrestBrown in 2019.
James has contributed commentary on R&D tax relief and tax disputes to publications including Bloomberg Law and International Tax Review.
R&D tax relief for aerospace and defence
The R&D tax relief incentive is designed to reward forward-thinking businesses for their investment in innovation, enabling reinvestment and spillover benefits for the wider economy. We’ve supported countless aerospace and defence businesses to access the relief, from high-growth start-ups to large multinationals.
Our multi-disciplinary team will help to qualify your R&D, quantify your claim and provide seamless end-to-end processing via our secure systems. Our industry-experienced technical experts help to bridge the gap between your experts and HMRC, ensuring that your projects are translated into accessible language for your claim documentation.
While we typically work directly with businesses on their R&D claims, we also partner with accountants that have aerospace and defence sector clients to support their claims. We do this on a flexible basis and can offer support tailored to your needs, from one-off claim reviews to full enquiry support.
Find out about opportunities for accountants to work with ForrestBrown by signing up to our newsletter, R&D Bites.
Grants for aerospace and defence
ForrestBrown’s expertise in securing grant funding includes supporting businesses in the aerospace and defence sector. Current funding opportunities include the Aerospace Technology Institute’s (ATI’s) funding programme, which aims to maintain and accelerate growth in the sector while making it more sustainable.
Innovate UK also offers competitions, such as:
- Dual-use Aviation Systems & Autonomy – supporting aviation technologies and systems for both civil and military use cases.
- Counter UAS Technologies – supporting counter Uncrewed Aerial Systems (UAS) dual use technologies.
Our expert grant advisory team, led by Karim Budabuss, has extensive experience in advising on all aspects of the grant funding process. This includes feasibility assessment, preparing and submitting a grant application and all related due diligence. We can also provide application reviews as well as additional capacity for in-house teams working to tight deadlines.
Stay up to date with relevant grant opportunities by signing up to our regular newsletter, GrantScan.
Patent Box relief for aerospace and defence
New products or processes are often patented to protect the value of the IP. If you have a patent in aerospace and defence, have you considered claiming Patent Box relief? This valuable relief on patented products or processes reduces the Corporation Tax (CT) rate on qualifying IP income to 10%.
Our experienced Patent Box team can support you with your claim and dispel any misconceptions you may have on eligibility and process.
Location strategy for aerospace and defence
Finding the best location for your business will involve taking myriad factors into consideration. These will include transport connectivity, supply of labour and availability of location incentives.
Our trusted team is experienced in identifying the ideal location and negotiating with local and regional authorities to secure location incentives.
Whether you’re a satellite manufacturer weighing up space clusters or a multinational aerospace business seeking a new international home, we can support your location search.
Capital allowances for aerospace and defence
Scaling up manufacturing capacity invariably requires investment in new plant and equipment. This may qualify for capital allowances relief, bringing significant cash flow benefits to your business.
Our capital allowances team, led by Peter Reynolds, can help review your eligibility for the relief, as well as creating the claim and submitting it for review. We can either work directly with you to amend your Corporation Tax return (CT600) or work with your accountant to do so.
Examples of aerospace and defence firms advised by ForrestBrown
Drone technology company
This unmanned aerial vehicle (UAV) technology business is pioneering hybrid power systems combining conventional electric-powered rotors with jet systems to achieve heavy-lift drones capable of carrying large payloads. Seeking to increase the power and number of jets required development to appropriately balance the propulsion systems, the angles of the jets and the relative sizes of the rotor blades.
Benefit: £93k
Software engineering company
This engineering research organisation provides technical expertise and secure on-site data centres to support new product development in the aerospace industry. This involves working across multiple software platforms, each designed for specific modelling or simulation tasks. The company sought to develop a new platform for hosting, deploying and scaling specialised simulation models in a cloud-hosted environment.
Benefit: £340k
Aerospace systems company
This aerospace company undertook to retrofit a radome into an aircraft cabin door that would thereby be a part of the aircraft’s pressure vessel while also adequately shielding radiofrequency radiation, with design and testing to validate it would perform safely when subject to a range of pressure changes across the door during flight.
Benefit: £1.2m
Speak to our expert team today
We’re passionate about helping businesses in the aerospace and defence sector access funding. Whether you’re interested in discussing your eligibility for R&D tax relief or progressing an application for ATI funding, we’d love to hear from you.
Find out more.
- Telephone
- 0117 926 9022
- hello@forrestbrown.co.uk