Construction Sector - R&D Tax Reliefs

R&D Tax Relief for Construction

Construction businesses in the UK are increasingly leveraging R&D tax relief to fund innovative projects that address complex challenges, improve efficiency, and enhance sustainability. Despite common misconceptions that R&D is only for high-tech industries, many construction firms develop new methods, materials, and bespoke solutions that qualify for substantial tax incentives.

The construction industry is diverse, encompassing activities from mining, quarrying, and forestry to infrastructure and building construction, product manufacture and supply, as well as maintenance, operation, and disposal. It can be broadly broken down into three sectors: commercial and social (approximately 45%), residential (40%), and infrastructure (15%). Around 60% of construction output is new build, with 40% being refurbishment and maintenance.

Qualifying R&D Activities in Construction

Typical qualifying activities include:

Developing bespoke construction solutions where existing methods don’t suffice.
Innovating new construction processes or techniques to overcome unusual site conditions.
Engineering novel structural supports and foundation systems.
Improving material performance, durability, or energy efficiency.
Integrating automation, digital technologies, or sustainable materials into building projects.
Designing and testing prototypes and temporary works structures.
Developing solutions for old infrastructure repurposing or heritage building restoration.
Using new methods to reduce project times or overcome unique technical challenges.
Applying technologies such as Virtual Reality (VR), Augmented Reality (AR), Big Data, Internet of Things (IoT), Robotics, Drones, 5G, Wi-Fi6, Artificial Intelligence (AI), Building Information Modelling (BIM), 3D Printing, Blockchain, and Cloud Technologies.

Financial Benefits

Construction SMEs can claim up to 186% of qualifying R&D expenditure against taxable profits, resulting in significant tax savings or cash credits. Larger businesses benefit from the Research and Development Expenditure Credit (RDEC) scheme. UK companies benefitting from R&D can trigger tax credits up to 33% of qualifying costs, with many construction companies successfully claiming tens to hundreds of thousands of pounds yearly, supporting continued innovation and competitive growth.

How to Successfully Claim

Identify projects with scientific or technological uncertainties requiring experimental or innovative solutions.
Maintain detailed documentation, including technical reports, project plans, timesheets, and costs.
Calculate eligible costs carefully, distinguishing R&D from routine activities.
Submit claims as part of your Corporation Tax return, supported by a clear technical narrative.

How We Can Assist

Our team specialises in the construction sector's unique R&D challenges, providing expert support to maximise your claim value, ensure compliance, and guide you through the evolving tax landscape.

Innovation Tax Reliefs Enquiry Process (2)

Do You Qualify?

You may be eligible if you have:

Created novel designs or construction methods.
Innovated processes to improve sustainability or meet health and safety standards.
Developed bespoke structures or technical solutions for complex site conditions.
Applied existing or renewable materials in new ways.
Designed automation processes to reduce labor costs.
Worked on heritage or listed buildings with multiple constraints.
Developed or refined design/building processes for greater accuracy.
Used or developed software for design or modelling.

If you answered “yes” to any of the above or face unresolved technological uncertainties, you might be able to claim R&D tax relief. Our team’s extensive knowledge streamlines the process and extracts qualifying activities from your projects.

To view all of our R&D Tax Services, visit the Innovation Tax Reliefs page.

📞 Embark on your next innovation journey with confidence - get in touch today using the form at the bottom of this page.

Innovation Tax Relief Service Team

Meet the talented individuals behind our success! Our team is driven by innovation, expertise, and a shared passion

Aidan James

Partner

Dan Howse

Partner

Helen Mallalieu

Partner

0113 426 9311

Jamie Favell

Partner

Jay Yoganathan

Partner

Michael Bull

Partner

Russ Cahill

Partner

Scott Wickham

Partner

Sophia Watsham

Partner

Robert Astley

Family Office Partner

020 8037 1020

Charlotte Davies

US Tax Director

020 8037 1082

Grace Bonse

R&D Tax Director

020 8037 1031

Ian Feaviour

US Tax Director

020 8037 1080

Rachel Alabaster

Private Client Tax Director

020 8037 1062

Richard Middleditch

Private Client Tax Director

020 8037 1061

Sucheta Thomas

Private Client Tax Director

020 8037 1055

Zohra Bala

Corporate Tax Director

Paul Spenceley

Tax Consultant

0113 426 9309

Carmen Shippey

US Tax Senior Manager

Emma Fleet

Corporate Tax Senior Manager

0113 426 9315

Nick Townend

Private Client Senior Tax Manager

020 8037 1065

Paul Flannery

US Tax Senior Manager

020 8037 1095

Sydnie Payne

Private Client Senior Tax Manager

Thomas Quinn

Corporate Tax Senior Manager

0113 426 9317

Toyan Williams

Corporate Tax Senior Manager

Ben Greenwood

Private Client Tax Manager

020 8037 1071

Hemma Chana

US Tax Director

Jeethu Job

US Tax Manager

Kim Liu-Newman

Corporate Tax Manager

0113 426 9316

Nicky Hutchison

Accounts and Finance Manager

0113 426 9303

Oliver Baker

Accounts Manager

020 8037 1074

Olivia Denton

Corporate Tax Manager

0113 426 9318

Martin Sevtsov

Marketing Coordinator

Rachel Ezrachie

Office and Operations Manager

020 8037 1100

Sophie Richards

Office and HR Manager

Alina Miron

US Tax Assistant Manager

020 8037 1099

Alister Gracias

Private Client Tax Assistant Manager

020 8037 1073

Amy Johns

US Tax Assistant Manager

Danica Owen-Davidson

Private Client Tax Assistant Manager

020 8037 1072

Darshini Dayanand

US Tax Assistant Manager

James Fothergill

Corporate Tax Assistant Manager

0113 426 9312

Jay Patel

Private Client Tax Assistant Manager

Emma Beattie

Accounts Preparer

0113 426 9319

Charlie Hill

Private Client Tax Senior

Elias Cox

Corporate Tax Senior

0113 426 9314

Hugo Costain

Private Client Tax Senior

James Davies

Corporate Tax Senior

0113 426 9315

Jess Bonner

Senior US Administrator

020 8037 1091

Talia Lockwood

Corporate Tax Senior

0113 426 9306

Ben Warner

Corporate Tax Assistant

0113 426 9301

Mathew Valliath

UK Private Client Tax Trainee

Vishnupriya Balakrishnan

UK Private Client Tax Trainee

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I have been Jamie's client for more than ten years and I keep being impressed with his client-centric, solution-orientated and straightforward approach to answering questions. I have not had a single tax question over the years where Jamie could not help in a professional, efficient and also cost-effective manner. This holds true for questions around various different jurisdictions and degrees of complexity. I can wholeheartedly recommend Jamie's services!

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I needed some specialist tax advice in respect of a complicated capital reduction demerger, a partial buyout of my company. Without specialist advice the tax hit was going to be huge.

TAP Advisory were recommended to me by my accountant, and my solicitor was also very complimentary about TAP when they found out we would be working with them. Tap's reputation preceded them.

The fees TAP charged were reasonable in my eyes, and small in comparison to the money they saved me, I was VERY grateful for the advice and guidance.

TAP were great to deal with throughout, they kept me in the loop in laymans terms and liaised well with the other professionals looking after my interests.

I could not recommend them enough in respect of their extensive knowledge and experience.

Paul

Managing Director of Audiology Business

I recently moved to the UK and TAP were very proactive at helping me understand the details of the law and how to reduce my tax exposure, they were also very patient responding promptly to all of my questions - great customer service!

Mergers & Acquisitions, BP

In our company we see our TAP contact very much as one of our team. For example we see him as more of a part time employee than a service provider. To this extent he has always acted into his manner available whenever we need him and on demand. I have never thought of TAP as having other clients (even though I know they have), because the client servicing is amazing.

CFO, Leading European Blue Chip

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Investment Director, Endless LLP

TAP have always delivered outstanding advice and support.

CEO, Major Italian Bank

TAP sought ways to save us tax and made the process straightforward.

Professor, Oxford University

The service I have received has been impeccable and I would be glad to recommend your services to friends, family and clients etc. The whole process has been made extremely easy for me since day 1 from my consultation with Robert and then on to the preparation of the CGT Calculations and submission by Sydnie and the Team, all my questions were answered promptly and I was provided all the information I needed, so a big thank you again for your efforts.

Overseas Property Developer

They were able to turn a HMRC GBP25,000 tax bill for income received in Germany into a GBP600 refund within a month!

Management Consultant, Oil & Gas, Altimus Management Solutions

Very clear and concise in explaining tax matters.

CEO, Asset Management Business

Very helpful throughout the process, available to answer one-off questions.

Director, JP Morgan

Very thorough and answered my queries.

Retired, Non-Dom

Excellent individual service for a very small client.

Propery Investor and Non-Resident Landlord

Extremely helpful in advising on mine and my wife's situation with differences between US and UK along with setting up a business.

Central Bank Rates Sales Executive, HSBC

Our company has engaged with Tax Advisory Partnership on R&D activities. Their service has been solution oriented, proactive, and good value for money. We have developed a good relationship with Tax Advisory Partnership and find their R&D consultants to be good listeners. I would highly recommend Tax Advisory Partnership for their knowledge of the regulations and the ongoing support they offer.

CFO of a major F1 motorsport company

Proactive in looking out for my interests with respect to tax and trust planning.

Managing Partner, Astor Ridge LLP

TAP have always been very responsive and thorough in the answers. It's been a pleasure working with you!

Chief Trading Officer, Asset Strategies Group

TAP have been incredible when it comes to responding fast and with clarity

Media Entrepeneur

TAP have been professional and thorough in every regard, pointing out pros and cons of all choices and assisting with my international circumstances brilliantly.

International Finance Executive

The service provided by Alister and colleagues was exemplary, efficient and timely. While my tax return was a long way from being complex, it did involve a non-standard issue which was researched fully and dealt with expertly.

Professor Brian Faragher

Commonwealth Scholarship Commissioner and Emeritus Professor of Medical Statistics at the Liverpool School of Tropical Medicine

Unrelenting commitment to offering the best service to myself and my company as well as sincere considered advice as my business has grown which has been an invaluable asset.

Director, Lily Vanilli Ltd

Very competent, always friendly and great to deal with.

Director, Market Risk Change Management, Deutsche Bank

Always aware of opportunities to reduce taxes.

Senior Partner, Covington & Burling LLP

Excellent quality of work and very responsive to our demands

Director, Financial Management & Consultancy

Exceptional service and patience! We really value the effort and support they have given us as a new start up.

Director, Media Start-up

Exceptional turn around time on any questions/problems presented

Serial Investor & Entrepeneur

Exceptionally thorough responses delivered in a very timely manner.

Senior Managing Director, State Street Alternative Investment Solutions

Good advice about the closure of a ltd company, options have been explained in an understandable manner.

Management Consultant, Oil & Gas

Private Equity Executive and Entrepreneur

I needed some specialist tax advice in respect of a complicated capital reduction demerger, a partial buyout of my company. Without specialist advice the tax hit was going to be huge.

TAP Advisory were recommended to me by my accountant, and my solicitor was also very complimentary about TAP when they found out we would be working with them. Tap's reputation preceded them.

The fees TAP charged were reasonable in my eyes, and small in comparison to the money they saved me, I was VERY grateful for the advice and guidance.

TAP were great to deal with throughout, they kept me in the loop in laymans terms and liaised well with the other professionals looking after my interests.

I could not recommend them enough in respect of their extensive knowledge and experience.

Paul

Managing Director of Audiology Business

Mergers & Acquisitions, BP

CFO, Leading European Blue Chip

Personable, communicative and responsive

Investment Director, Endless LLP

TAP have always delivered outstanding advice and support.

CEO, Major Italian Bank

TAP sought ways to save us tax and made the process straightforward.

Professor, Oxford University

Overseas Property Developer

They were able to turn a HMRC GBP25,000 tax bill for income received in Germany into a GBP600 refund within a month!

Management Consultant, Oil & Gas, Altimus Management Solutions

Very clear and concise in explaining tax matters.

CEO, Asset Management Business

Very helpful throughout the process, available to answer one-off questions.

Director, JP Morgan

Very thorough and answered my queries.

Retired, Non-Dom

Excellent individual service for a very small client.

Propery Investor and Non-Resident Landlord

Extremely helpful in advising on mine and my wife's situation with differences between US and UK along with setting up a business.

Central Bank Rates Sales Executive, HSBC

CFO of a major F1 motorsport company

Proactive in looking out for my interests with respect to tax and trust planning.

Managing Partner, Astor Ridge LLP

TAP have always been very responsive and thorough in the answers. It's been a pleasure working with you!

Chief Trading Officer, Asset Strategies Group

TAP have been incredible when it comes to responding fast and with clarity

Media Entrepeneur

TAP have been professional and thorough in every regard, pointing out pros and cons of all choices and assisting with my international circumstances brilliantly.

International Finance Executive

Professor Brian Faragher

Commonwealth Scholarship Commissioner and Emeritus Professor of Medical Statistics at the Liverpool School of Tropical Medicine

Unrelenting commitment to offering the best service to myself and my company as well as sincere considered advice as my business has grown which has been an invaluable asset.

Director, Lily Vanilli Ltd

Very competent, always friendly and great to deal with.

Director, Market Risk Change Management, Deutsche Bank