UK R&D tax credits help businesses recover part of their innovation costs, whether developing new products, processes, or technologies. Even unsuccessful projects can qualify. Companies can reduce corporation tax or receive a cash repayment, boosting cash flow. The incentive supports SMEs and larger firms, encouraging continued investment in research and development.

The 2025 UK Budget freezes income tax thresholds, raises taxes on savings, property, and dividends, caps pension salary sacrifice, reduces ISA limits, updates inheritance tax, and adds a high-value council tax surcharge from 2028.