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News - Published 11th May 2016

Research and Development (R&D) – The building blocks of the property & construction industry

Property sector R&D

Many companies in the property & construction industry do not believe they qualify for R&D tax reliefs but we have saved our clients in this sector almost £500,000 in tax so can you afford to miss out?

A property or construction project does not simply become reality and every project has unique challenges. Although R&D requires advances in science and technology we encourage our clients to look at R&D as “Resolving Difficulties” which are invariably faced in many innovative projects.

So in an industry with a rich history of innovation right up to the present day where buildings touch the sky why are so few companies making claims for property sector R&D?

Property sector R&D Overview

The government don’t just give away such generous tax reliefs, R&D sounds too good to be true?

The R&D tax reliefs are generous but they reduce corporation tax which makes up a small proportion of government tax receipts, they receive almost half from income tax/NIC so they are giving innovative companies tax relief hoping they will grow, employ more staff and ultimately pay more tax in total. This doesn’t mean you should miss out on these R&D tax reliefs offered

But we are in the property and construction industry, surely this is just for men in white coats working in labs?

R&D is relevant to any business in any sector, try to see R&D as “Resolving Difficulties” through science or technology, it doesn’t even need to result in something new it could just be an improvement to an existing process or product in the property and construction industry.

That’s great but we made a loss so we haven’t actually paid any tax

Actually if you are loss making, even though you have not paid tax, HMRC will pay you an R&D tax credit repayment so you could still benefit

Download the full document to see what R&D tax refunds/savings are available for Architects, Structural engineers, Demolition and materials distributors.

If you require any further information on any of the issues raised above or would like help in making a Property sector R&D claim, please email Andrew England at aengland@menzies.co.uk or Anthony Lalsing at alalsing@menzies.co.uk

Find out more about Menzies Property & Construction sector services.

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