From the course: Understanding UK Business Finance and Tax

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Who can claim the R&D super-deduction or tax credit?

Who can claim the R&D super-deduction or tax credit?

From the course: Understanding UK Business Finance and Tax

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Who can claim the R&D super-deduction or tax credit?

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The research and development super-deduction in the U.K., also known as R&D tax relief, is considered to be one of the most generous R&D tax incentives in the world. The U.K. government uses it as a powerful tool to encourage U.K. businesses to innovate wherever possible, so that U.K. can remain one of the forerunners in technological and scientific innovation. In this video, I will explain what is the R&D super-deduction, who can claim it, and how it works. A super-deduction can be made or a tax credit can be claimed by businesses that undertake research and development. The government is looking for innovative work and technological or scientific advancements in the field in which the business operates. Small companies can claim a super-deduction of 186% for the money spent on research and development. This means that if the company spent £100 on R&D, it could claim £186 as an expense in its tax return for that expenditure. In addition to this, if the small company undertakes…

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