Industry insight: Claiming R&D tax relief – who owns your IP?
Mohamed Dafea, co-founder of R&D tax funding firm Grantica, considers the likely impact of tax reforms on innovation in the engineering sector. UK engineering has long been a hotbed of innovation, with many businesses in the sector securing R&D tax relief for their ground-breaking research. But major reform of the UK’s R&D tax regime is likely to have a significant impact on engineering firms that outsource R&D tasks, with intellectual property (IP) becoming an increasingly important factor in claims. The SME and large company R&D schemes are being merged to create a single R&D regime. Under the new scheme, companies of all sizes can claim qualifying payments for contracted-out R&D, subject to certain conditions. Who can claim? The question of exactly who can make a claim has become…