The CIOB is urging construction firms to look into the government’s R&D tax credit schemes.

The institute believes that as the construction industry often develops new products and solutions during the course of a project, it could be missing out on tax relief.

Relief can reduce a company’s corporation tax bill by up to 15% of its eligible R&D costs and some firms can claim 100% capital allowances for R&D expenditure.

The call comes as the CIOB reveals the results of an online survey into innovation in construction, which attracted 459 respondents, 433 of whom were company directors or managers. 44% said they spent less than £5,000 a year on R&D, with that figure rising to 86% companies employing less than 50 people (see graphs).

Respondents were also asked to name the innovation that has benefited them most over the past five years. The top three were the internet, IT developments and PDAs/mobile phones.

When asked what they would develop with a £1m budget for innovation, there was a huge array of answers, the most popular of which covered carbon reduction sustainable energy/energy efficiency and improved offsite fabrication. However, several respondents called for technology which is already available.

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Source

Construction Manager

Postscript

Read HM Revenue & Custom’s guide on R&D tax relief for small and medium sized companies at www.hmrc.gov.uk/randd/intro.htm