Can You Claim Research & Development Tax Credits?

31 July 2019

Many farming businesses which trade as Limited Companies are thought to be missing out on valuable Research & Development tax credits.

Corporation Tax credits have been available for many years but are being overlooked in the field of agriculture, the main issues being that many do not even know they exist.

Under the small and medium-sized enterprise (SME) scheme, covering companies with less than 500 staff, the relief allows deduction of 230% of the qualifying spend against yearly profit. To qualify, projects are those designed to make an advance in science or technology, and can be linked to either the existing farming business, or a new area. So long as the claimant can demonstrate the required conditions are being met, the relief is available for developing new or improving old technologies.

As an example, successful claims have been made in areas such as experimentation with feed to maximise animal weight gain or productivity, development of disease-resistant crops, development of higher-yielding crop strains and new methods of crop planting.

Agricultural areas where R&D tax credits might be applied include:

  • Agronomy
  • Disease and pest control
  • Nutrition
  • Energy and water efficiency
  • Storage, processing and operations
  • Automation
  • Drone and GPS technologies
  • Soil management/enhancement
  • Regulatory compliance

If you would like to speak to our R & D tax specialists about your personal situation, please contact us on 01633 871122.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

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