1 minute read • published in partnership with Moore Kingston Smith
Insight: Sleepwalking through R&D tax relief changes could cost manufacturers
Recent reforms have redrawn the boundaries of how R&D tax relief is claimed, with potentially significant financial consequences. Few sectors are as R&D-intensive as manufacturing. The industry accounts for almost half (48%*) of all UK business R&D spend, up from 41% in 2023. Chemicals and pharmaceuticals alone contribute around 40% of that total, but investment stretches across the sector, from advanced food production to space exploration.
Whether it’s improving production processes, developing new technologies or testing advanced materials, R&D is a key driver of competitiveness and long-term growth for both business and the economy.
That makes R&D tax relief, a government incentive designed to encourage businesses to invest in and commercialise innovation, all the more important. It allows companies to reclaim a portion of qualifying research and development costs, either by saving on their corporation tax bill or as a cash credit. For many, this relief provides critical cash flow that funds the next cycle of innovation.
Thomas Hayden, Director of R&D at Moore Kingston Smith, a leading multi-disciplinary advisory, tax and audit firm, explains why manufacturers must act now to avoid missing out.
Read more here: R&D tax relief changes for manufacturers.
