Innovation Ecosystem
RESEARCH & DEVELOPMENT TAX CREDITS
In the United Kingdom, Research and Development (R&D) tax credits are available to companies that are carrying out qualifying R&D activities.
The aim of these tax credits is to encourage and reward companies for investing in R&D activities, which can help to stimulate innovation, improve competitiveness, and ultimately drive economic growth.
To qualify for R&D tax credits in the UK, a company must be able to demonstrate that it is engaged in scientific or technological R&D activities that seek to achieve an advance in overall knowledge or capability in a field of science or technology.
The R&D activity must also meet certain criteria established by the UK government, such as being aimed at resolving scientific or technological uncertainties, and involving a systematic and investigative approach.
There are two types of credits available:
- SME R&D tax credit
- R&D Expenditure Credit (RDEC)
Overall, the UK R&D tax credit scheme is designed to support and incentivise companies to invest in R&D activities, and to help ensure that the UK remains a global leader in innovation and technological advancement.