Deduction in computing profits of tradeU.K.
11(1)This paragraph applies where a company is entitled to relief under [F1Part 1, 2 or 2A] of this Schedule for an accounting period.
(2)In so far as the company’s qualifying expenditure for that period is deductible in computing for tax purposes the profits for that period of a trade carried on by the company, it is entitled (on making a claim) to an additional deduction in computing the profits of the trade for that period of an amount equal to 25% of the qualifying expenditure.
(3)In sub-paragraph (2) “qualifying expenditure” means—
(a)in the case of relief under Part 1, qualifying R&D expenditure (see paragraph 3), F2...
(b)in the case of the relief under Part 2, qualifying sub-contracted R&D expenditure (see paragraph 8) [F3and
(c)in the case of relief under Part 2A, qualifying additional SME expenditure (see paragraph 10B).]
Textual Amendments
F1Words in Sch. 12 para. 11(1) substituted (with effect in accordance with s. 168(3)(b) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 17(2)
F2Word in Sch. 12 para. 11(3) repealed (with effect in accordance with s. 168(3)(b) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 17(3), Sch. 43 Pt. 3(10)
F3Sch. 12 para. 11(3)(c) and preceding word inserted (with effect in accordance with s. 168(3)(b) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 17(3)