London continues to dominate UK R & D tax relief claims
London has seen another significant rise in R&D (research and development) tax credit claims, according to statistics released today by HMRC.
01 October 2020
Businesses in the capital have secured 29% of the £5.3bn of R&D tax relief support claimed nationwide, which has stimulated more than £35bn of innovation-focused expenditure by British firms.
The latest 2018-19 figures show London companies made a total of 11,820 claims, up from 9,675 made that this time last year. There were 10,190 successful R&D tax relief claims made by SMEs in the city region as well as additional claims secured through the RDEC scheme. This amounted to more than £1.5bn in R&D tax relief being secured by London-based businesses.
Overall there were 59,265 R&D tax credit claims made across the UK in the 2018-19 period London companies also secured £510m in rebates for Patent Box claims, another tax relief incentive available to help firms develop intellectual property (IP) assets. Overall, companies across the UK secured a total of £992m in Patent Box tax breaks in 2018-19.
This year’s R&D tax credit statistics show manufacturing companies along with those in ‘Professional, Scientific and Technical’, and ‘Information and Communication’ sectors continuing to have the greatest volume of claims. The three categories account for a combined total of 66% of claims and 71% of the total amount claimed in 2018-19.
Article originally published on London Love Business