More firms across the South West are unlocking growth funding by claiming research and development (R&D) tax relief, according to new figures.
But the region still lags many other parts of the UK in accessing what is widely viewed as a key way of boosting innovation.
Latest figures from HMRC show claims for R&D tax credits increased by 18% in the South West during the 2014-15 tax year. At the same time the value of claims rose by 50% to a total of £120m.
However, despite this increase, the South West only accounts for 8% of all UK claims. 
The relief is worth 45p for small and medium-sized firms and 29p for large companies for every £1 of qualifying expenditure. Loss-making companies can also realise a cash payment.
Sharon Omer-Kaye, pictured, South West tax partner at accountancy firm RSM, which has an office in Bristol, said the figures showed that many businesses were overlooking the opportunity to gain a cash injection through R&D tax relief.
She said: “This reflects our experience as many businesses are unaware they qualify for tax relief and some perceive the process as onerous so are reluctant to make a claim.
“The criteria span a broad range of activities which mean businesses across all sectors, ranging from manufacturing and life sciences through to professional services and technology, could benefit from tax relief.
“Any business that has developed a new or significantly improved product, process or system via new methods or techniques could be eligible to claim. The government has recently made more money available for research and development, with an additional £2bn a year commitment for the life of this Parliament, which increases the opportunity for even more businesses to access funding through innovation.
“In addition, any qualifying intellectual property (IP) developed in the UK could qualify for a reduced rate of corporation tax at 10% as part of The Patent Box regime, which means businesses based in the South West could be missing out on further savings.”
