Innovation taxes encompass a wide range of tax incentives and tax relief tools. This includes the more well-known R&D tax incentives, as well as lesser-known creative tools such as patent box relief and video games tax relief.
The team at Accountants Glasgow are experienced in supporting businesses through every step, from the initial fact-finding and analysis to the application of the most suitable tax relief. It is our duty to provide the very best support and ensure each client maximises their efficiency and tax relief.
What types of innovation tax relief are there?
There are fundamentally three main types of innovation tax relief that our team can help you with. As mentioned above, they are linked to more creative industries, as well as more traditional research and development. We’ve broken down the three main types of tax relief and incentives below.
R&D Tax Incentives
R&D tax credits are a government-back incentive system that has been designed to push development and innovation forward. Should a business undertake a project that aims to improve a particular product from the world of technology or science, then this counts as research and development.
It is important to note that this doesn’t mean a new product is created, or even that the project must be successful to be eligible for R&D tax credits.
Patent Box Relief
A highly specialist area of innovation taxes that our experts are perfectly placed to support you with. When a business has finished developing technology and has commercialised it, patent box relief allows them to obtain savings on any profits this technology generates. This is done by receiving a lower rate on corporation tax on profits that can be attributed to any intellectual property that qualifies.
This rate is effectively 10%, lower than the standard 19% corporation tax level that businesses must pay. Find out more by speaking to Accountants Glasgow.
Video Games Tax Relief
Another type of tax relief that aims to help encourage activity and development within the creative industries. Video Games Tax relief helps computer game developers in the UK reduce their corporation tax bills through additional deductions on the costs involved in games development.
There are significant savings available for those that can understand this type of tax relief. Sadly, it is a highly complex area of innovation tax relief and we recommend speaking to experts like Accountants Glasgow to understand more.
To find out more about a specific type of innovation tax relief or incentive, contact us today!