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Latest Research & Development Tax Relief statistics released by HMRC for tax year 2013/14

  • Since the R&D tax credit schemes were launched in 2000-01 up until 2013-14, almost 120,000 claims had been made and more than £11.4 billion in tax relief claimed.
  • By the end of 2013-14, more than 33,800 different companies had made claims under the SME (Small and Medium Enterprise) scheme since it began in 2000-01, and over 7,800 under the large company scheme, which launched in 2002-03.
  • The total number of claims rose to 20,100 for the accounting period ending in 2013-14. The increase was primarily driven by an increase in the number of SME claims (up 23%). This is distinct from the number of returns (18,720) as a return can include more than one claim, e.g. where there is a claim for both the large company scheme and Vaccine Research Relief.
  • The total amount of R&D support claimed rose to £1.75bn – an increase of £380m from the previous year. The cost of support for the SME scheme rose by £200m from £600m to £800m. The cost of the large company scheme was lower at £380m, reflecting the introduction of the new RDEC scheme; the cost of the RDEC scheme was £580m.
  • The total R&D expenditure against which claims were made amounted to £14.3bn in 2013-14, an increase of 7% from the previous year.
  • R&D claims and the amount claimed are mainly concentrated among companies with a registered office in London, the South East or the East of England (46% of all claims and 64% of the total amount claimed). However, the regional split is based on the registered office location, which may not be where all of the R&D activity took place.

The ‘Manufacturing’, ‘Professional, Scientific and Technical’, and ‘Information and Communication’ sectors continued to have the greatest volume of claims, making up a total of 76% of claims and 81% of the total amount claimed for 2013-14). However, these figures should be treated with caution as the industry classifications used are company classifications and may not reflect the industry in which the R&D activity itself is carried out.

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