SCHEDULES
SCHEDULE 12Tax relief for expenditure on research and development
Part 3The relief
11Deduction in computing profits of trade
1
This paragraph applies where a company is entitled to relief under Part 1 or 2 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), and
b
in the case of the relief under Part 2, qualifying sub-contracted R&D expenditure (see paragraph 8).