Overview of UK Company and Business Tax Relief

Overview of UK Company and Business Tax Relief
The software underpinning RDRelief was sold to one of the big-4 professional service firms in 2018. Consequently, the brand is no longer in operation.
  • R&D Tax Advisors are invited to find out more about the Inspired.tax claim preparation software.
  • Otherwise, please feel free to continue to browse this website for useful information regarding claiming R&D Tax Credits in the UK. However, beware that none of the information has been updated since 2018.


The government has endeavoured to create an environment where businesses can succeed and prosper within the UK. This is demonstrated by the number of different Tax Relief regimes that have been created to support businesses large and small in various circumstances. Some of the main Tax Relief schemes available to UK businesses are detailed below:

Research and Development (R&D) Tax Relief

Main article: R&D Tax Credits
There are three R&D Tax Credit regimes that support companies undertaking qualifying project in science and technology. Depending upon the size of your company and the nature of the costs incurred the benefit can be up to 26% of the qualifying expenditure.
RD Relief specialises in supporting companies to make R&D Tax Credit claims, through their advanced online software solution. Please get in touch to find out more.

Patent Box

Patent Box Relief (also known as Intellectual Property Box Relief) is a government incentive that allows companies to use a 10% corporation tax rate from its patented inventions. Qualifying profits arising from the Patent Box are then applied to the 'nexus formula' to calculate the companies tax liability. More information can be found from HMRC.

Capital Allowances

Assets for use in a business, such as equipment, machinery, business vehicles, can benefit from capital allowances. The company can then deduct some or all of the value from pre-tax profits before calculating the companies tax liability. More information about capital allowances can be found on the HMRC site.
The Annual Investment Allowances dictates the value of qualifying items that can be deducted from profits before tax. This currently stands at 200,000 (following a reduction from 500,000 from 1st January 2016).

Employment Allowance

The employment benefit allows businesses to get up to 3,000/year off their Class 1 National Insurance bill (however if you pay more than this amount then the Employment Allowance benefit will no longer be available. Please see further details on the HMRC website.

The Seed Enterprise Investment Scheme (SEIS)

Through the SEIS investment scheme, up to 150,000 is available to investors who buy shares in companies that are less than two years old. More information is available on the HMRC website

Creative Industry Relief

There are eight different tax reliefs available to companies working in the creative sector that either allows companies to claim a larger tax deduction or a cash credit. To qualify for the creative industry tax reliefs, all media (films, tv programmes, computer games, animations etc) must pass a specific test to formally verify (through the British Film Institute) that the company can qualify. More information is available on the government's website.

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