1044Additional deduction in calculating profits of tradeU.K.
(1)A company is entitled to corporation tax relief for an accounting period if it meets each of conditions A to D.
(2)Condition A is that the company is a small or medium-sized enterprise in the period.
F1(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)Condition C is that the company carries on a trade in the period.
(5)Condition D is that the company has qualifying Chapter 2 expenditure which is allowable as a deduction in calculating for corporation tax purposes the profits of the trade for the period.
(6)For the company to obtain the relief it must make a claim.
See section 1046 (which prevents a company from making a claim if it is not a going concern).
(7)The relief is an additional deduction in calculating the profits of the trade for the period.
(8)The amount of the additional deduction is [F286%] of the qualifying Chapter 2 expenditure.
(9)This section is subject to —
[F3(a)section 1045A (requirement to make a claim notification);]
[F3(b)]section 1113 (cap on R&D aid in relation to a particular research and development project).
(10)For the meaning of “qualifying Chapter 2 expenditure” see section 1051.
Textual Amendments
F1S. 1044(3) omitted (with effect in accordance with Sch. 3 para. 39 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 3 para. 3(3)
F2Word in s. 1044(8) substituted (in relation to expenditure incurred on or after 1.4.2023) by Finance Act 2023 (c. 1), s. 4(3)(a)(4)
F3S. 1044(9)(a) inserted and words renumbered as s. 1044(9)(b) (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 2(2), 20