RESEARCH & DEVELOPMENT (“R&D”) TAX RELIEF
Construction companies spend a significant amount of time developing superior designs and practices to overcome project challenges. This continuous evolution of technologies provides ample opportunities for companies to benefit from the UK Government’s Research and Development (“R&D”) tax incentive schemes to reduce its tax bill.
R&D tax relief can offer substantial reductions in payable corporation tax or even, in some instances, a cash credit. According to the latest figures from HMRC, the amount of tax relief claimed by UK companies for R&D expenditure has tripled in the last 10 years to £1.75bn. However, only around 2% of the total number of R&D tax claims eminate from the construction industry.
Europe’s leading R&D funding advisor, Ayming, can guide you through the R&D claim tax process from start to finish. From an initial feasibility study, through full data collection and report compilation, to full management of the R&D tax claim, Ayming work by your side to ensure that you receive maximum benefit for your innovative projects.
An eligible project could be a new or improved product or process where there is an element of uncertainty in the outcome. Each construction project has its own particularities and technical challenges that may require a traditional construction methodology or an innovative solution to suit. For instance, the site constraints in order to make a project feasible, or to produce it in a more economical way or to reduce the delays on the construction programme.
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Examples of construction activities that could potentially qualify as R&D:
- Process development where an existing business has to stay in operation whilst a new building is constructed in its place;
- Green aspects, such as the reduction of waste, increased recycling, improved materials or lower carbon use;
- New modular off-site assembly of components;
- Site restrictions of space or access, meaning that new techniques have to be developed;
- Soil constraints posing, for example, hidden aquifers, contamination or unstable soil needing research and development of solutions.