R&D Tax Relief for UK Maritime SMEs in Offshore Projects

The UK is at the forefront of offshore renewable energy, with ambitious targets to achieve 43 - 50 GW of offshore wind capacity by 2030 (Heap, 2024). Beyond wind, the UK also claims a top spot for wave and tidal energy, with experts citing it as a “global leader in wave and tidal innovation” (Energy Global, 2025)

Despite the UK’s leadership in offshore renewables, smaller innovators face significant challenges. Rising costs and supply chain pressures have already forced developers to halt major projects, highlighting the financial strain in the sector. Regulatory hurdles and slow grid connections further complicate progress, particularly for newer wave and tidal technologies.

Yet the potential benefits are clear: tidal and wave energy alone could contribute billions to the UK economy, creating skilled jobs and reducing carbon emissions. But for SMEs, developing new maritime technology is risky and expensive. Accessing grants and funding opportunities can be overwhelming without the right guidance. Research from the University of Cambridge (2024), shows that the UK’s innovation ecosystem still offers fewer tailored resources for smaller firms than for larger ones, making it harder for SMEs to secure the support they need to bring innovative ideas to life.

Despite the challenges, the economic and environmental benefits of offshore renewables are tremendous. The sector is already delivering for Britain in tangible ways:

• Clean Power for Millions: Offshore wind generated a record 49 TWh of electricity in 2023, enough to power about half of all UK households, and now contributes 17% of the country’s total electricity supply (Emanuel, 2024). Every turbine at sea reduces our reliance on imported gas and helps stabilise energy prices long-term.
• Cutting Carbon Emissions: By displacing fossil fuels, UK offshore wind output in 2023 alone avoided an estimated 18.5 million tonnes of CO₂, a huge step toward net-zero goals (Emanuel, 2024). Similarly, upcoming tidal stream and wave projects will provide predictable, zero-carbon energy, helping to further shrink the UK’s carbon footprint by the 2030s.
• Jobs and Investment: The offshore renewables boom drives significant economic growth. The industry already supports over 30,000 jobs across the UK, from engineering and construction to maintenance, and is projected to grow to 100,000+ jobs by 2030 with the right policies (Renewable UK, 2025). Coastal regions are seeing new investment in ports, factories, and supply chains, revitalising communities. In the long run, leadership in offshore wind, floating wind, and marine energy could unlock billions of pounds in exports and inward investment as other countries seek British expertise.

Beyond these figures, offshore renewables offer improved energy security (harnessing local natural resources) and substantial co-benefits like cleaner air and innovation spillovers. It is a true engine of clean growth, cutting emissions while boosting UK industry.

The UK government and industry bodies are ramping up efforts to support innovation in offshore renewables. Initiatives like the Offshore Renewable Energy Catapult’s new Floating Wind Innovation Centre in Aberdeen (opened in 2024) are providing facilities for testing and development (Recharge, 2024). Innovate UK continues to offer grant competitions and accelerators to nurture maritime startups. And through mechanisms like the Contracts for Difference (CfD) programme, the government has started ring-fencing budget specifically for emerging technologies (e.g. tidal power) to ensure they get a foothold in the market (International Water Power and Dam Construction, 2024). All these measures are aimed at lowering barriers for SMEs and shortening the path from lab to offshore deployment.

One of the most impactful support mechanisms, especially for cash-strapped smaller companies, is the UK’s Research & Development (R&D) Tax Relief scheme. This government incentive effectively rewards companies for investing in innovation by reducing their tax bill (or providing a cash credit for loss-making firms). Many maritime businesses qualify, since developing new vessels, offshore structures, monitoring systems, or software can count as R&D for tax purposes. However, historically some firms haven’t taken full advantage, either due to lack of awareness or uncertainty about what activities qualify.

In 2023 - 2024, the R&D tax relief system saw important reforms to boost support for R&D-intensive SMEs. Notably, from April 2024 the government has lowered the R&D intensity threshold, meaning a company now only needs to spend 30% of its total expenses on R&D (down from 40% previously) to be considered “R&D intensive” and unlock higher rates of relief (GOV.UK, 2023). This change significantly widens eligibility: it is expected to bring around 5,000 extra SMEs into the enhanced relief bracket, delivering an additional £50 million of support per year by 2028 (GOV.UK, 2023). In practice, more maritime startups and scale-ups will now qualify for a generous payable R&D tax credit (if loss-making) or larger corporation tax deductions, injecting much-needed cash back into their businesses.

For innovative SMEs, this sends a clear signal: if you are pushing the boundaries of technology, we want to support you. Combined with grants, loans and other initiatives, the enhanced R&D relief can help cover the costs of experimentation and product development that are vital in the offshore renewables arena.

We are specialists who work closely with the maritime sector to identify qualifying R&D activities, maximise the value of claims, and remove the administrative headache from the R&D tax relief process. Many firms are pleasantly surprised to learn that the projects they are undertaking, designing a new mooring system, improving hull efficiency, or developing offshore monitoring software, could be eligible for tax relief. For instance, Marine Zero Limited, a specialist in hybrid electric vessel technology, has successfully leveraged our support to access R&D tax relief (see the full case study here).

We comb through your operations to uncover all potential qualifying costs, from staff time to materials and testing, so you do not leave money on the table. And once we have scoped out the eligible R&D, our team handles the complexities of the paperwork and HMRC compliance on your behalf, making the claim process smooth and stress-free. That means you can get on with running your business. As a result, the companies we support can reinvest their tax savings into hiring engineers, buying equipment, or launching the next big innovation, instead of worrying about forms and guidelines.