Part 13Additional relief for expenditure on research and development
Chapter 2Relief for SMEs: cost of R&D incurred by SME
Reliefs
1044Additional deduction in calculating profits of trade
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.
F13
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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 —
F3a
section 1045A (requirement to make a claim notification);
F3b
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.