Substantial tax relief is available for research and development (R&D) companies in Scotland. The Tax Credit scheme, a recent Government initiative, can help your company to:
- Create new and more competitive products, services and processes.
- Locate and enter new markets.
- Provide high-quality job opportunities for skilled people.
Research Support in Scotland
Two tax credit programmes exist – one for small and medium-sized enterprises (SMEs) and one for larger companies – while businesses of all sizes can claim 100 per cent first year allowance tax relief on any capital they spend on R&D.
Tax Relief to Support SME Research
The Tax Credit scheme can be hugely beneficial to SMEs, as many smaller companies find it difficult to commit funds to long-term projects. This Government programme encourages SMEs to carry out research and development for the first time, or to increase their level of R&D work.
SMEs are defined as being businesses employing less than 250 people and having a turnover of no more than €50 million, and/or an annual balance not exceeding €43 million.
Find out more about R&D Tax Credits for SMEs.
Tax Credit Support for Larger Companies
Larger companies can also claim huge tax benefits from conducting research and development in Scotland. An extra tax-deductible allowance of 25 per cent on top of the existing 100 per cent first year allowances of a company's R&D spending can be claimed.
Find out more about R&D tax relief for larger companies.
Contact us to find out about research grants in Scotland.