R&D tax credits for the construction industry

When we think about construction, we tend to think in terms of design and aesthetic outcomes rather than the engineering advances. But it is those head-scratching moments that are needed for those buildings to be realised that come from R&D.

3,340

claims

£365

million in claim value

£109,281

Average claim value

Source HMRC R&D tax credits statistics 2025

The statistics published by HMRC for 2023-24 are provisional and have been uplifted to include estimates for claims not yet received.

What qualifies as R&D in the construction sector?

We see qualifying R&D activity in the innovative use of green or sustainable methods. R&D often leads to an improvement in existing construction techniques to solve site specific or environmental issues or developing new products such as lighter weight, stronger, resilient or easier-to -process building materials.

This sector includes the following types of business.

  • Residential construction
  • Commercial construction
  • Civil engineering

Yes, construction companies that have already claimed for R&D tax credits might find that they could claim even more by applying for the Patent Box scheme. In 2023-24, so far, only 60 companies elected into Patent Box, claiming £5 million in benefit.

Construction sector businesses

Building companies

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