Finance Act 2002 (c. 23)

SCHEDULES

SCHEDULE 12 U.K. Tax relief for expenditure on research and development

Part 1 U.K. Entitlement to relief for R&D expenditure: large companies

Entitlement to relief under this Part U.K.

1 (1) A company (in this Part referred to as “the company”) is entitled to tax relief under this Part for an accounting period if—

(a) it is a large company throughout that period, and

(b) its qualifying R&D expenditure for that period is not less than—

(i) [F1 £10,000], if the accounting period is a period of 12 months, or

(ii) such amount as bears to [F2 £10,000] the same proportion as the accounting period bears to 12 months.

(2) For the purposes of this paragraph the company’s qualifying R&D expenditure is “for an accounting period” if it is deductible in computing for tax purposes the profits for that period of a trade carried on by the company (including expenditure that is so deductible by virtue of section 401 of the Taxes Act 1988).

Textual Amendments

F1 Word in Sch. 12 para. 1(1)(b)(i) substituted (with effect in accordance with s. 168(4)(d)(i) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 9(2)

F2 Word in Sch. 12 para. 1(1)(b)(ii) substituted (with effect in accordance with s. 168(4)(d)(i) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 9(2)