R & D Tax Credit Claims by Construction Companies Increase by Half

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R & D Tax Credit Claims by Construction Companies Increase by Half

The latest HMRC figures show there was a 47% year-on-year rise in the number of claims for research and development tax credits submitted by construction firms in 2015-16, with the level of support provided also rising by 29%.

R&D tax relief and credits are designed to encourage greater R&D spending, leading in turn to greater investment in innovation. They either reduce a company’s corporation tax liability or reimburse the company for its expenditure by allowing a tax credit payment. Current rates are up to 230% of R & D expenditure to set again corporation tax or 14% as a paid tax credit.

Construction companies submitted 705 claims for research and development tax credits in 2015-16, up from 480 in 2014-15. The total amount of R&D support claimed rose to £45m, an increase of £10m from the previous year, while the value of the R & D expenditure by construction companies was £390m in 2015-16.

First introduced in 2000, over 170,000 claims have been made to date, with almost £16.5bn paid by HMRC.

Construction companies typically claim the costs of researching new scientific and technological developments and application methodologies, these can include application and installation processes.

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