Research and development tax credits
Scotland can offer your company substantial tax relief for research and development (R&D).
The tax credit scheme is a government initiative that helps businesses:
- Create new, competitive products, services and processes
- Find and access new markets
- Provide high-quality jobs for skilled people
Research support in Scotland
Two tax credit schemes exist for research support in Scotland. One provides help for small and medium-sized enterprises (SMEs) and one provides help for larger companies.
All businesses can claim 100 percent first year allowance tax relief on any capital spent on R&D.
Tax relief to support SME research
The tax redit scheme is ideal for SMEs that find it hard to commit funds to long-term projects. The scheme encourages SMEs to commit to research and development for the first time or to increase their R&D work.
To be eligible your business must employ less than 500 people with a turnover of no more than €100 million and/or an annual balance of no more than €86 million.
HM Revenue and Customs has more about R&D tax credits for SMEs
Tax credit support for larger companies
Scotland offers excellent tax benefits to companies conducting research and development. An additional tax deductible allowance of 30 percent on top of 100 percent allowances of R&D spending can be claimed.
HM Revenue and Customs has more about R&D tax credits for larger companies