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How R&D tax relief can support your circular economy innovation

October 16, 2024

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R&D tax relief

The circular economy is an innovative economic model that emphasises the sustainable use of resources. One effective way for architects to embrace circular economy principles is through R&D tax reliefs.

how-r-d-tax-relief-can-support-your-circular-economy-innovation

The circular economy is a simple concept that creates value from natural resources. Instead of the traditional, linear approach to the built environment, which takes, makes, uses, and disposes of building materials, the circular economy calls for a more cyclical approach. Circular economy principles can be used to achieve truly sustainable buildings and pave the way for a sustainable future.  

Circular economy principles promote sustainability by prioritising local, low-impact materials such as salvaged wood or recycled steel, reducing reliance on high-embodied carbon materials like concrete or brick. Additionally, circular economy principles focus on the construction of low-energy buildings equipped with features like solar panels and passive design to minimise energy consumption. A key principle is to design structures with future use and adaptability in mind, extending their value and minimising the need for demolition.

There are a number of benefits of the circular economy. Namely, that buildings designed with these principles can drastically reduce their environmental impact. Moreover, they are often more cost-effective than their traditional counterparts. By reducing waste and optimising resource use, these buildings can minimise both construction and operational costs. Long-term savings from energy-efficient design and low maintenance requirements further reinforces the importance of circular architecture.  

To adopt circular economy principles, architects must embrace new business models, design methodologies, and logistics strategies that eliminate waste and pollution, keep products and materials in use for as long as possible, and regenerate natural systems.

How to adopt circular economy principles?

To embrace circular economy principles, architects must adopt innovative business models, design principles, and logistics strategies aimed at minimising waste and maximising resource efficiency. Here are some key strategies to facilitate a circular economy:  

Transitioning to a circular economy requires collaboration across the whole value chain to develop a multifunctional, flexible and efficient building. Architects can champion these principles by integrating them into their projects and advocating for sustainable practices within the industry.

Can you benefit from the R&D scheme?

The benefits of the circular economy are clear, offering both reduced environmental impact and significant cost savings. The adoption of circular economy principles in architecture is critical to creating sustainable and resilient buildings that can withstand the challenges of climate change. By embracing principles such as design for disassembly, thoughtful material selection, energy efficiency, water management, and circular business models, architects can open up new opportunities for sustainable building design. However, implementing these principles can be challenging due to issues like the limited availability of recyclable materials, complex regulations, and higher upfront costs. To overcome these challenges, there has to be a mindset change and a number of innovative design solutions.  

The R&D tax relief scheme can be a powerful tool for architects to overcome these challenges and unlock the potential of circular architecture. If you’re spending money on your circular economy innovation, pushing the boundaries of the field, and tackling scientific uncertainties, then you could be eligible under the R&D tax credit scheme. By embracing R&D and pushing boundaries, you can develop unique design solutions and differentiate yourself from competitors to stay ahead of the curve. By actively engaging in R&D, you can explore sustainable practices, develop energy-efficient buildings, and adopt new technologies, positioning yourself as a leader in the field.  

How can we help?

Here at Folio Partners, our service goes beyond simply processing claims. We will work closely with you to identify and document qualifying R&D activities within your claim. This collaborative approach ensures a comprehensive and accurate claim that reflects your firm's projects. Our team will then prepare a detailed, robust R&D report which provides a clear breakdown of your claim. Ultimately, our aim is to ensure that the submission process is as smooth as possible.  

Contact us today to learn how we can support your R&D claim submission for your architectural practice. Alternatively, if you want to find out more about R&D tax relief in the architecture sphere and the sort of projects that qualify, click here.

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