Finance Act 2000

16(1)The amount of the R&D tax credit to which a company is entitled for an accounting period is an amount equal to—

(a)16% of the amount of the surrenderable loss for the period, or

(b)if less, the total amount of the company’s PAYE and NICs liabilities for payment periods ending in the accounting period.

(2)The Treasury may by order substitute for the percentage for the time being specified in sub-paragraph (1)(a) such other percentage as they think fit.

(3)An order under sub-paragraph (2) may make such incidental, supplemental, consequential and transitional provision as the Treasury think fit.