(1)This section applies if—
(a)a company makes a claim under section 1087 for relief to which it is entitled for an accounting period, and
(b)the company is a small or medium-sized enterprise in the period.
(2)The amount of the deduction under that section is 40% of the company’s qualifying Chapter 7 expenditure for the period (see sections 1098 and 1099).
(3)The deduction is in addition to any other deduction in respect of the expenditure.
(4)Subsection (2) is subject to the modification contained in section 1090 for larger SMEs.
(5)Expenditure taken into account for the purpose of determining the amount of the deduction may include expenditure which is qualifying Chapter 7 expenditure for the accounting period because of section 1099(1)(b) (pre-trading expenditure).
(6)This is despite the fact that the expenditure is unrelated to the trade mentioned in section 1087(4).