Research and Business

Utilising our Knowledge

Tax Credits

The UK government have introduced R&D tax credits as a way to encourage greater R&D spending and to promote investment in innovation.

Research and development (R&D) tax credits are a tax relief for companies which can either reduce a company's tax bill or, for some small or medium sized companies, provide a cash sum.

The R&D tax credit allows companies to deduct up to 175% of their expenditure on R&D when calculating their profit for tax purposes.

In order to qualify for this benefit, the activity undertaken must fall under the definitions for R&D as specified by the Inland Revenue. In most cases, expenditure on research activity at the University of Bradford will fall within the definition of R&D and can therefore quality for the R&D Tax Credits.

Full details of the R&D tax credit legislation can be found at the Inland Revenue¿s web site: www.inlandrevenue.gov.uk/randd/