Research and Development Tax Relief – a brief explainer

Have you, as a pig producer or allied business, ever heard of Research and Development (R&D) tax relief, asks NPA senior policy advisor Ed Barker,

According to HMRC data the answer is likely to be no. Recently released statistics show that agriculture only accounts for 1% of all businesses taking up this significant tax break from the Government and all pig businesses are urged to look into it if they think they are undertaking anything that could be classified as on-farm R&D.

This can include anything that is innovative or creative for the industry and even applies to unsuccessful projects.

The tax relief is a whopping 230% – yes 230%. In order to be eligible for it, HMRC state that any R&D work must form part of a specific project to make an advance in science or technology. The project must relate to your company’s trade – either an existing one, or one that you intend to start up based on the results of the R&D.

To get R&D relief you need to explain how a project looked for an advance in science and technology, had or tried to overcome uncertainty and couldn’t be easily worked out by a professional in the field.

We know that a small number of pig producers and allied businesses have successfully claimed for this relief before. To understand what may qualify with regards to your business, you are advised to speak to your accountant or tax adviser, who should have a good grasp of the relief.

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