B5.118 Farming and research & development
Farming research and development (R&D) is considered in the context of all the changes that farming faces (see B5.119).
R&D relief allows companies that carry out qualifying R&D related to their trade to claim an additional corporation tax deduction for specific qualifying expenditure. It's an efficient way for many businesses to secure more capital and, in turn, underpin innovation.
The first problem for farming is that the trading entity has to be a limited company and a large number of farms trade as a partnership generally for capital tax concerns. The value of many farms is high and it is difficult to look at a new corporate entity to be used for an R&D project without full succession
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