The scheme “Research & Development (R&D) tax credits” is designed to encourage eligible firms to invest in innovation by incentivising larger expenditure on R&D. The scheme works by reducing a company’s corporation tax liability (deduction claim), with the option of receiving a cash payment if the company is loss making (credit claim). More in details, the main objective of the scheme is to support and stimulate business led innovation. The scheme addresses the under-investment in R&D by smaller firms, and supports additional R&D investments.