Research and Development Tax Credits
Type
Size
Area
Target
Availability
Tax Relief
£35million per year
Region-wide
SMEs (and large companies*) investing in R&D
On-Going
What type of funding does it offer?
The scheme offers tax relief on investments into Research and Development.
Size of Deals
150% of eligible expenditure of at least £10,000 incurred in a companies accounting period, can be deducted when calculating the net profit. There is no upper limit on eligible expenditure. SMEs which experience a loss in the accounting period may be entitled to a tax credit in cash of £24 for every £100 of actual R&D expenditure.
In which area is the support available?
North East England
Who can apply?
Companies, especially SMEs, carrying out research and development, e.g. create or make an appreciable improvement to a process, material, device, product or service through science or technological changes. Eligible expenditure could be staff directly or indirectly engaged in carrying out research and development as well as consumable stores used directly in carrying out the research.
Where can I get more information?
Please contact your local Inland Revenue office for eligibility details and seek advice from an accountant or a tax adviser.
Websites:
www.dti.gov.uk/rd-guide/rd-guidelines-2004.htm
www.inlandrevenue.gov.uk/randd/index.htm
*the scheme is also available for large firms but with different eligibility criteria and benefits.
Supporting Documents and Downloads
Research and Development Tax Credits [pdf]
(23 KB)
