Of the 180 or so principal reliefs costed by HMRC, only 3% of the tax expenditures results from reliefs from corporation tax. The CBI lets you know how they incentivise business.
Businesses are clear that current R&D tax credit schemes are an essential part of the wider ecosystem that makes the UK an attractive place to invest. This is particularly true since the introduction of the ‘above-the-line’ R&D expenditure credit, which businesses can recognise in pre-tax profits, meaning even lossmaking companies stand to benefit. This is important to support the UK’s growing high-tech sector, which is often characterised by high up-front investment, fast revenue growth but taking a number of years before any profit is realised.