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2015-2016 R&D Tax Statistics from HMRC

Fresh off the press, the latest statistics are in from HMRC regarding R&D Tax. The high level summary points can be found below:

In 2015-16 the total number of claims for R&D tax credits rose to 26,255, an increase of 19% from 2014-15.

The increase was primarily driven by a rise in the number of SME claims, which totalled 21,865 in 2015-16, up from 17,875 in 2014-15 (22% increase).

The total amount of R&D support claimed rose to almost £2.9bn in 2015-16, an increase of £470m (20%) from the previous year.

The cost of support for the SME scheme rose to £1.3bn, reflecting the increase in the number of claims and the rise in the enhanced expenditure rate to 130%2 in 2015-16. The cost of support under the large company and RDEC schemes rose to almost £1.5bn in 2015-16.

The total value of R&D expenditure against which claims were made was £22.9bn in 2015-16, an increase of 4% from the previous year.

R&D claims and the amount claimed is concentrated in companies with a registered office in London, the South East or the East of England (46% of all claims and 62% of the total amount claimed). However, the regional split is based on the registered head office location so may not be where all of the R&D activity takes place.

The ‘Manufacturing’, ‘Professional, Scientific and Technical’, and ‘Information and Communication’ sectors continued to have the greatest volume of claims, making up a total of 73% of claims and 75% of the total amount claimed for 2015-16.

Between 2000-01, when the R&D tax credit schemes were launched, and 2015-16, over 170,000 claims have been made and £16.5 billion in tax relief claimed.

Source – HMRC 2015-16 R&D Tax Statistics – Full Report