Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Get a grant

18 March 2014 / Maria Kitt
Issue: 4444 / Categories: Comment & Analysis , Business

How to fund research and development without losing tax relief

KEY POINTS

  • Grants can complement research and development tax strategy.
  • Funding agencies offer support.
  • Impact of a grant on research and development relief.
  • Beware of payments of subcontractors.

Research and development tax relief is not the only form of incentive open to innovative companies. Indeed tax relief is not always an appropriate commercial strategy for such activities.

There are a number of reasons for this. First the UK research and development schemes are notoriously complex and many companies are put off by the costs and uncertainty involved.

Similarly UK research and development activity can obtain tax relief only where the entity carrying it out is liable to UK corporation tax ie usually where the business is conducted through a limited company.

Many companies and businesses conducting research and...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon