UK Tax Credits and Grants
Can You Claim?
Tax credits and grants in the UK are essential tools that can help businesses grow, innovate, and reduce their tax liabilities. These government incentives are designed to support various business activities, from research and development (R&D) to investment in new technologies and apprenticeships. Below is a breakdown of some of the key schemes that may benefit your business.
Your business may be eligible for various grants. Below, we've gathered insights from experienced tax credit consultants to help you explore which grants might be available for your company!
About R&D:
Research and Development (R&D) refers to activities undertaken by businesses to
innovate, improve existing products or services, or create new ones. In the UK, the
government offers R&D relief or credits to encourage companies to invest in innovation.
This tax relief allows businesses to reduce their tax liabilities or receive cash rebates for
eligible R&D activities.
R&D can cover a wide range of projects, from improving production processes to
developing new technologies.Who Qualifies?
Scientific or technological advancement – The project must aim to create new
knowledge or improve existing processes, products, or services through
innovation
Uncertainty Resolution – The project should seek to resolve scientific or technical
uncertainties that cannot easily be solved by experts in the field
Systematic investigation – The work must be conducted in a planned and
methodical manner, involving testing, trials, and analysis to overcome the
identified uncertaintiesWhich Industries can claim?
Manufacturing
Pharmaceuticals
Biotechnology
Information Technology
Software development
Engineering
Construction
Aerospace & Defense
Automotive
Energy & Utilities
Agriculture & Farming
Food & Beverage
Telecommunications
Medical Devices & Healthcare
Chemicals & Materials
Architecture
Media
Robotics & Automation
Textiles & Fashion
Marine & Shipbuilding
Renewable Energy & SustainabilityAbout Energy
In response to the substantial energy cost pressures exacerbated by COVID-19 and its
aftermath, the UK government introduced a range of tax initiatives aimed at helping
energy-intensive businesses mitigate rising costs. These measures were designed to
support industries heavily reliant on energy consumption, ensuring they could remain
competitive and continue operating within the UK. By offering tax relief and financial
incentives, the government sought to ease the burden on businesses, promoting both
economic stability and the retention of vital industries in the country.
Energy Incentives in the UK are designed to encourage businesses to adopt energy-
efficient technologies, reduce carbon emissions, and invest in renewable energy. These
schemes provide financial benefits in the form of tax reliefs, grants and subsidies to
support businesses in making environmentally conscious investments.Who Qualifies?
In order for businesses to qualify for these schemes there are differing criteria’s, but
the most common industries these businesses come from are:Which Industries can claim?
Manufacturing
Glass and Ceramics
Mining and Quarrying
Paper and Pulp
Food and Drink Production
Iron and Steel
Textiles
Refining and Petrochemicals
Nuclear
Defence and AerospaceAbout Land Remediation
Land Remediation Relief is a UK tax incentive designed to encourage companies to
clean up and redevelop contaminated or derelict land. It allows businesses to claim a
tax deduction for the costs associated with remediating land that has been
contaminated by previous industrial use or natural contamination. The relief can apply to
both current and potential property owners.
Companies that undertake qualifying remediation work can claim 100% of their
remediation costs as a tax-deductible expense. Additionally, they may claim an extra
50% of the qualifying costs, bringing the total relief to 150%. This enhanced relief
effectively reduces a company’s corporation tax liability and encourages investment in
brownfield site redevelopment.
Eligible costs for LRR include activities such as removing harmful substances, treating
contaminated groundwater, or stabilising derelict land. However, it is important to note
that relief cannot be claimed for contamination caused by the company itself.Who Qualifies?
Property Developers
Landowners
Companies Improving brown landAbout Patent Box
The Patent Box is a UK tax relief scheme designed to encourage companies to profit
from their intellectual property (IP). It allows companies to pay a reduced corporation tax
rate of 10% on profits earned from qualifying patents and other forms of intellectual
property.
The Patent Box was introduced by the UK government in 2013 to encourage innovation
and to incentivize companies to develop, retain, and exploit intellectual property (IP)
within the UK. The main reasons for it being introduced were to promote innovation,
retain intellectual property in the UK, boost economic growth and foster
competitiveness.Which Industries Can Apply?
Pharmaceuticals and Biotechnology
Manufacturing
Technology and Software
Engineering
Energy
Medical Devices
Agriculture and Food Production
TelecommunicationsAbout Capital Allowances
Capital Allowances are a UK tax relief that allows businesses to offset the cost of
certain capital expenditures against their taxable profits. Instead of claiming the full cost
of an asset in one go, businesses can deduct a portion of the cost over time, reducing
their overall tax liability. The goal is to encourage investment in business assets by
easing the financial burden of acquiring them.
Benefits
Tax Savings – Capital Allowances reduce taxable profits, leading to lower
corporation bills
Cash flow improvement - Businesses can reduce their tax liability and reinvest
the savings into further growth or operations.
Incentives to invest - By offering relief on assets like energy-efficient equipment,
businesses are encouraged to adopt sustainable practices.Who Qualifies?
Property owners who lease commercial properties and make improvements or
install fixtures and fittings.
Landlords renting out furnished residential properties (for certain types of assets).
Businesses investing in plant and machinery, vehicles, equipment, and other
qualifying assets.
Companies constructing or improving non-residential buildings, such as offices,
factories, or warehouses, under the Structures and Buildings Allowance.Which Industries Can Claim?
Manufacturing
Construction and Real Estate
Retail
Hospitality
Agriculture
Technology and IT
Transport and Logistics
Healthcare
Energy and Utilities
Leisure and Tourism
Increasing Your Chances of Successful claim
Using a professional consultant can greatly enhance a business’s ability to maximize the benefits of tax credits and grants.
Consultants bring specialized expertise and experience to navigate the complexities of these programs, ensuring that all eligible expenses are identified and properly documented. They can also streamline the application process, reducing the risk of errors and increasing the likelihood of a successful claim. By leveraging their knowledge, businesses can secure significant financial advantages and optimize their returns.
Take the first steps
To explore how a consultant can assist you, please fill in the form below, and an expert will reach out to discuss your needs and guide you through the process.
