Home Business News London dominates in R&D tax credits claim value

London dominates in R&D tax credits claim value

by LLB Reporter
20th Apr 20 11:56 am

Newly released HMRC figures show Inner London companies once again securing a major share of R&D (research and development) tax relief with over £1bn paid out in 2017-18.

Other strong performing areas include the West Midlands, Cambridgeshire and Outer London where businesses collectively secured £740m in tax relief for innovation-focused investment. Other regions securing significant R&D rebates include Surrey, Oxfordshire, Hertfordshire, Greater Manchester, and Hampshire.

Businesses in Somerset, however, have claimed the top spot in R&D tax claims intensity in the UK according to this year’s UK Innovation Intensity League Table, published by innovation funding specialists ABGI-UK. It shows the leading 20 unitary authority areas which are ranked on the percentage of local businesses making a successful claim for R&D tax relief.

Somerset tops the table with a total of 305 successful claims made by local SMEs and large businesses, representing 4.3% of all enterprises within its unitary authority area. Another area within the South West, Bournemouth, Christchurch and Poole, placed second in this year’s table with 4.06% of its businesses securing a successful claim. Mid-Ulster, which topped last year’s league table, was third (3.8%) while Cambridgeshire ranked fourth (3.44%).

Commenting on the rankings, Scott Henderson, Chief Executive at ABGI-UK said, “As our Innovation League Table shows, there many parts of the UK where companies are heavily investing in research and development activities. As our top three areas of Somerset, Bournemouth, Christchurch and Poole, and Mid-Ulster demonstrate, there is a lot of innovation going on outside the M25 corridor.

“Companies within key sectors including manufacturing, engineering and IT/software are mainly behind this strong regional placement in our league table. By securing R&D tax relief for their innovation investment, a significant proportion of companies are benefitting by enhancing competitiveness. More of this investment activity will be critical in kick-starting the UK economy as we emerge from the current public health crisis.”

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