Businesses investing in research and development (R&D) received £2.9 billion in government support in 2015/16.
Official figures released by the Treasury show qualifying spending on R&D from businesses rose for the sixth consecutive year to reach around £23 billion in the 12 months to 5 April 2016.
R&D tax credits allow firms to claim a corporation tax deduction or payable credit on their investment costs towards R&D, encouraging innovation and enabling businesses to remain competitive.
There are 2 schemes available:
- R&D expenditure credits
- the small or medium-sized enterprise (SME) scheme.
Since the schemes were launched in 2000/01, more than 170,000 claims were made with around £16.5 billion in tax relief claimed.
The scheme has helped SMEs receive the competitive boost they need, with claims up by 22% to 21,865 – and most of those claims coming from first-time SME applicants.
Mel Stride, financial secretary to the Treasury, said:
“From manufacturers to scientists, Britain’s brilliant entrepreneurs are leading the way in technology and innovation.
“We will continue to support these businesses so they can promote growth across the country and compete in the global economy.”