As the definition of R&D for the purposes of the tax credit becomes more clearly defined, it is apparent that a variety of activities undertaken in the Consumer Business sector will be eligible for relief. Increasing experience with companies in the sector demonstrates that businesses are significantly underestimating the level of potentially eligible activity or are failing to make any claim for relief.

The relief provides a net benefit of up to 7.5% in relation to qualifying revenue expenditure, subject to the availability of profits. Immediate tax relief for capital R&D expenditure may also be available.

More specifically, substantial R&D can often be found within the following sectors:

• food and beverages
• tobacco
• personal care
• cosmetics
• household products
• consumer electronics

The latest guidelines on the meaning of R&D make it clear that activities that seek to achieve an advance in technology through the resolution of technological uncertainties are R&D, provided that the solution is not readily available or deducible by a competent professional working in the field.

For more information, download our brochure on R&D tax relief opportunities for companies in the Consumer Business sector (pdf).