R & D Tax Incentives & Patent Box

R&D and Patent Box tax incentives were created to support companies that seek to innovate and then commercialise intellectual property. The incentives operate in tandem to provide generous Corporation Tax savings in a time where margins matter and there is endless pressure on cash flows.

Derek

Derek Gemmell

Corporate Tax Operations Leader

Who we can help

  • ENTREPRENEURS & START-UPS
  • SMES
  • MULTINATIONAL GROUPS
  • PRIVATELY OWNED & LISTED BUSINESSES

How we can help

  • PREPARATION OF R&D TAX RELIEF CLAIMS
  • PATENT BOX CLAIMS TO REDUCE CORPORATION TAX ON IP-RELATED PROFITS
  • STRATEGIC PLANNING TO MAXIMISE CLAIMS YEAR-ON-YEAR
  • RESOLUTION OF HMRC ENQUIRIES FOR NEW OR HISTORIC CLAIMS
  • INNOVATION & IP DUE DILIGENCE FOR MERGERS, ACQUISITIONS, OR FUNDING

R and D Tax Incentives

Speak to us Today

These provide a valuable cash flow boost to help support innovative activities.  For accounting periods commencing from 1 April 2024, a new merged scheme provides an effective tax credit of 15% of qualifying expenditure for most companies.

Early-stage R&D intensive SME companies can still claim an enhanced deduction of 186% of qualifying expenditure. This can be surrendered for a repayable tax credit. For accounting periods commencing from 1 April 2024 this can be worth up to 27% of qualifying R&D expenditure – but a company must have incurred a tax adjusted loss prior to be eligible for the enhanced deduction.

Potential claimants should note that they may need to notify HMRC of an intention to claim R&D tax relief no later than six months after the end of the company’s accounting period. Failure to notify will mean that a company is permanently “locked out” from claiming R&D tax relief for the accounting period concerned.

PATENT BOX: TURN YOUR IP INTO A TAX ADVANTAGE

Where R&D activities result in the creation of a qualifying patent, the profits derived from that patented IP can attract an effective rate of Corporation Tax of 10%, compared to the current headline rate of 25%.

If your company holds qualifying patents or licenses, you could benefit from a 10% Corporation Tax rate on profits derived from that IP. This is a substantial saving when the UK’s headline rate of Corporation Tax is 25%.

Our experts help you:

  • Identify eligible IP and income streams
  • Ensure compliance with Patent Box rules
  • Prepare your Patent Box claim
  • Integrate IP strategy into your wider tax planning

Whether patents are granted or still pending, we’ll help you achieve long-term value.

Maximise Patent Benefits

WHAT OUR CLIENTS GET

Identifying eligibility and making a claim can be complex but at AAB, our r&d tax credit specialist team make it simple.

We don’t just prepare claims – we combine specialist tax experts with industry-trained engineers to deliver robust, accurate submissions that maximise your return and keep you compliant.

  • Recover the maximum cash benefit for R&D and IP-related expenditure you’ve already spent
  • A smooth, expert-led process that saves you time and effort
  • Peace of mind knowing your claim is accurate, compliant, and HMRC-ready
  • Full support throughout the process – from eligibility to submission to payout
  • Clear, confident advice to help you plan effectively and maximise future opportunities
Check if you're eligible for R&D incentives

THINK YOU DON’T QUALIFY? THINK AGAIN

There are still many misconceptions about who can claim.

The starting point with any claim is that your company needed to have:

  • incurred qualifying expenditure; and
  • conducted an activity which sought an overall advance in science or technology through the resolution of technological uncertainties.

Projects do not need to have been successful to qualifying – it’s the act of seeking an advance which matters.

There does need to be an identifiable technological uncertainty. This is a problem which cannot be readily deducted using existing methods by a competent professional in the relevant field of technology.

R&D tax reliefs are not limited by sector. This means that engineering, construction or manufacturing projects can be just as eligible as work in biochemistry or computer science.

SIMPLIFYING THE CLAIM PROCESS

R&D and Patent Box regimes are valuable – but complex. We manage the process from start to finish:

  • Confirm eligibility
  • Identify qualifying work and expenditure
  • Calculate your benefit
  • Prepare, submit, and support your claim
  • Manage HMRC responses and defend claims where needed
Let’s Make R&D Tax Credits Simple

WHY AAB?

Technical + Financial = A better claim

Our cross-functional team of engineers, scientists, and tax experts ensures:

  • Every qualifying activity is identified and evidenced
  • Technical narratives are clearly aligned with HMRC criteria
  • Financial data is accurate, complete, and fully integrated
  • Claims are robust, efficient, and defendable

We speak your language – and HMRC’s.

If you’re investing in innovation, you should explore whether R&D tax credits and the Patent Box can provide valuable savings to your company.

Speak to our Innovation Taxes team for a no-obligation consultation. We’ll quickly assess your eligibility and outline how much you could claim.

You focus on innovating. We’ll focus on delivering results.

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