R&D tax credits > Client sectors > Construction

R&D tax credits for the construction industry

When we think about construction, we tend to think in terms of design and aesthetic outcomes rather than the engineering advances. But it is those head-scratching moments that are needed for those buildings to be realised that come from R&D.

3,340

claims

£235

million

£70,359

Average claim value

What qualifies as R&D in the construction sector?

We see qualifying R&D activity in the innovative use of green or sustainable methods. R&D often leads to an improvement in existing construction techniques to solve site specific or environmental issues or developing new products such as lighter weight, stronger, resilient or easier-to -process building materials.

This sector includes the following types of business.

  • Residential construction
  • Commercial construction
  • Civil engineering

Yes, construction companies can claim under either scheme depending on their size and other deciding factors. Of the R&D tax relief claims made in 2018-19 so far, 91% of them were under the SME scheme equating to 74% of the value claimed.

Yes, construction companies that have already claimed for R&D tax credits might find that they could claim even more by applying for the Patent Box scheme. However in 2018-19, so far, only 30 construction companies claimed corporate tax relief under Patent Box, so potentially the construction sector is missing out on this opportunity.

Construction sector businesses

RD-construction

Building companies

RD-construction

Building companies

RD-construction

Building companies

Technology, information and communication case studies

Computer Controlled Solutions Ltd

Industry: Information Technology

  • GovGrant helped make a claim against expenditure on an R&D project which failed initially
  • Claims made by CCS under the R&D tax credit scheme have increased by 500% over four years

Read full CSS case study