Tax relief and incentives for small business

Currently, there is a highly favourable environment for businesses and those who invest in them. In addition to the growing diversity of sources of finance, such as crowdfunding and peer-to-peer lending, there are tax relief schemes and small business incentives devised to help companies of all sizes secure funding.

If your business meets certain criteria, it may also qualify for help with Business Rates or Tax Relief for Research and Development.

Cloud Accounting NI has listed the main opportunities below (14) to help small business save very often significant amounts on tax payable. Your accountant should be discussing these give your venture a helping hand.

Business rate reliefs

An overview on which properties are eligible for discounts on their business rates, and how to apply for these reliefs

Enterprise Zones

There are currently 24 Enterprise Zones across the UK and they support new businesses through a range of incentives

The Seed Enterprise Investment Scheme (SEIS)

This aims to encourage investment in small and early stage companies by reducing the risk to investors of investing

Employment Allowance

Employers can reduce the amount of National Insurance contributions (NICs) they pay for their employees by up to £2,000.

Annual Investment Allowance

Currently stands at £500,000. How to claim, what is covered and how to calculate it

Capital Allowances

A tax relief designed allowing the cost of your company's assets to be written off against its taxable profits

Enterprise Investment Scheme

Helps small companies raise finance by offering tax relief to investors who buy new shares in their companies.

Venture Capital Trust (VCT) Scheme

Designed to help smaller companies raise finance by offering a range of tax reliefs to investors who invest in VCTs. The VCT's in turn onward invest or lend to small and medium sized businesses

Capital Gains Roll-over Relief

You may be able to delay paying Capital Gains Tax if you either sell (‘dispose of’) some business assets or use all or part of the proceeds to buy new assets. This relief means you won’t pay any tax until you sell the new asset

Research and development tax credits

Small businesses can get 225 per cent tax relief on their research and development spending

Patent Box

Enables companies to apply a lower rate of Corporation Tax to profits earned after 1 April 2013 from its patented inventions and certain other innovations.

Social Investment Tax Relief 

This provides a range of income and capital gains tax reliefs which can be claimed by individual investors for investments they have made in social enterprises with a view to helping people and communities. It is in place for investments made or capital gains arising in the period from 6 April 2014 to 5 April 2019

Tax reliefs for the creative industries

A group of five corporation tax reliefs that allow qualifying companies in the creative industries to claim a larger deduction. In some circumstances claim a payable tax credit when calculating their taxable profits

Entrepreneur's Relief

When an entrepreneur sells or closes business, they pay only 10% Capital Gains Tax on any qualifying profits

RG & Co



Catalyst Inc,
Titanic Quarter
+44 2895 219365

Name: RG & Co Chartered Accountants
Email address: richard@cloudaccountingni.com
Phone: +447868663538