Research and Development tax credits were launched in 2000 as a very valuable subsidy to encourage UK companies to invest more in Research and Development in order to be more competitive in world markets. They have been supported by all governments and in 2014 15,930 companies applied for Research and Development tax credits. Since 2000 more than ?9.5 billion has been claimed and the government has set aside approximately ?1.5 billion every year to help SME?s and large companies improve their cash position by reducing their Corporation tax payments. They have also increased the amount of tax credits to small and medium enterprises (SME?s). It is now ?26 for every ?100 paid of Research and Development spend and up to ?32 for companies with losses.
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