R&D tax credits – a great advert for your business

Buried in the small print of the Budget was a line telling us to expect more publicity this year around Research & Development (R&D) tax credits. So what are they – and why are they particularly valuable to businesses looking to sell?



R&D tax credits are hugely valuable to businesses. Under the SME Scheme (for employers with annual turnovers under €100 million or balance sheets worth less than €86 million) they are worth £130 for every £100 of qualifying spend. This can be a cash payment, a tax rebate or carried forward as losses. Effectively, this means that the government is paying you to innovate.

Receiving R&D tax credits makes your business look great to potential purchasers. Financially, they can make a big difference to the way your balance sheet looks to a potential buyer. And because you can get them for innovations that create technical advances, receiving them proves that you have valuable intellectual property.

Any business can potentially qualify for R&D tax credits if they have invested in something bespoke. That could be a new computer system, a new production process or a new material with special qualities.

Even if you don’t have any qualifying R&D now, if you are planning to invest in your business R&D tax credits could provide additional working capital to help you grow so it’s worth talking to a specialist adviser to see if your investment could qualify.


If you would like to find out more about whether your business could take advantage of R&D tax credits please contact us at 0118 959 8224 or email info@evolutioncbs.co.uk.


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