Innovation is of paramount importance to success in the global economy. It fosters competitiveness, productivity and quality employment whilst allowing a response to demands and resolving issues within the supply chain.
The UK Government recognises the significance of innovation and offers a generous range of tax incentives to reward those companies engaged in the innovative process.
The tax reliefs are available for specific activities involved with innovation including Research and Development and production within Creative Industries.
Importantly, whilst enhanced tax relief is available for the costs invested in these activities (and has been for some time), the Government has now introduced a favourable tax regime for the upstream profits generated from these activities with the formation of the ‘Patent Box’ which offers preferential tax rates for profits generated from intellectual property.