Construction R&D Tax Credit Specialists
Construction companies can claim R&D tax relief when they develop new or appreciably improved methods, materials or designs and the technical solution was uncertain. Qualifying work is usually found in non-standard ground conditions, novel structures, building services and low-carbon solutions rather than in standard builds.
What construction work qualifies?
Examples that can qualify
- Developing foundation or ground engineering solutions for conditions standard methods could not handle
- New low-carbon materials or mixes tested to meet performance targets
- Building services designs that required modelling and testing beyond established practice
- Novel modular or off-site construction methods
- Retrofit solutions for heritage or unusual structures where the method was uncertain
Examples that usually do not
- Designing to established codes and standards
- Planning, programme and supply chain problems
- Land and building costs
- Routine site supervision and project management
- Aesthetic or architectural choices
How do contracting rules affect construction claims?
Contracting rules matter in construction because R&D often happens within a client contract. Under the merged scheme, relief generally goes to the company that decides to carry out the R&D, rather than the company that pays for the contract. If your client specified the work as R&D, the client may be the one entitled to claim. Since April 2024 a company doing work under contract cannot usually claim where the R&D was intended or contemplated by the customer. This is a technical area and worth checking before you count a project.
What evidence do construction claims need?
- Design notes showing why standard solutions would not work
- Calculations, models and test results
- Records of trial methods, failures and changes
- Timesheets or allocations for engineers and site staff involved in the R&D
What should a construction specialist bring?
A construction specialist should understand engineering at site level, the contracting rules and the boundary between design development and routine delivery. They should be cautious: construction has seen many weak claims, and a specialist who leaves out marginal projects protects the rest.
Example: how a construction uncertainty is described
Illustration. A contractor needed to build foundations next to a sensitive structure where standard piling would cause unacceptable vibration. Established low-vibration methods did not achieve the required load in the ground conditions found. The engineers designed and tested a combined approach, monitoring vibration and settlement, and revised it twice before it met both limits. The design, testing and monitoring were R&D; the rest of the build was not.
Typical cost profile
| Cost type | How often it features | What to watch |
|---|---|---|
| Engineers' and designers' staff costs | Almost always | Time on the uncertain design and testing only |
| Site staff during trials | Sometimes | Separate trial work from normal delivery |
| Test materials and monitoring | Common | Exclude materials that form part of the finished building |
| Specialist subcontractors | Common | Who decided to undertake the R&D decides who claims |
| Land and buildings | Never qualifying | Capital costs are excluded |
What does HMRC focus on in construction claims?
- Whether design followed established codes and methods
- Who decided to undertake the R&D under the contract
- Whether commercial or programme problems have been described as technical ones
- Separating the uncertain phase from normal delivery
How to identify genuine R&D on site
Look for moments when the engineering team said the standard approach would not work and they had to design, test and change a solution. Those moments, and the evidence around them, are where qualifying R&D usually sits.
What should you ask an R&D specialist about construction claims?
- How will you decide who is entitled to claim under our contracts?
- Will an engineer review our design and test records?
- How will you separate trial work from normal delivery on site?
- How cautious are you with borderline projects?
Construction has a history of weak claims, so a cautious specialist who documents the engineering uncertainty clearly is the best protection.
Frequently asked questions
Can a subcontractor claim R&D relief?
Sometimes. It depends on whether the subcontractor decided to undertake the R&D or whether the customer intended or contemplated it in the contract.
Do site materials qualify?
Only consumables used up or transformed in the R&D itself. Materials that form part of the finished building usually do not.
Is every bespoke building R&D?
No. Bespoke design using known methods is routine engineering. R&D needs genuine technological uncertainty.
Can a principal contractor claim for its subcontractors' work?
Only in some cases. It depends on who decided to undertake the R&D and how the contracts are written.
Is digital construction, such as BIM, R&D?
Using established modelling tools is routine. Developing new modelling methods or software to solve a technical problem may qualify.
How far back can we claim?
Within two years of the end of each accounting period, provided any claim notification was made in time.
Get matched with a vetted R&D tax specialist
Tell us what you do and roughly what you spend on development. We check the basics, then introduce you to a specialist from our panel whose sector experience fits your work.
- Free to use, with no obligation to appoint anyone
- Introductions only to firms that meet our panel criteria
- Fee terms in writing from the firm before you sign anything
- We flag claim deadlines we can see from your answers
Our matching service is free for businesses. Specialist firms on our panel pay us a fee when we introduce a business to them. That fee does not change the price a firm quotes you, and you are never obliged to appoint anyone we introduce.