SCHEDULES

SCHEDULE 13Tax relief for expenditure on vaccine research etc

Part 2Manner of giving effect to relief: small and medium-sized companies

I116Entitlement to tax credit

1

A company may claim a tax credit for an accounting period in which it has a surrenderable loss.

2

A company has a “surrenderable loss” for an accounting period—

a

if paragraph 14 applies and the company incurs a trading loss in that period in the trade mentioned in sub-paragraph (1)(b) of that paragraph;

b

if paragraph 15 applies and the company is treated under that paragraph as incurring a trading loss.

3

The amount of the surrenderable loss is equal to the lower of—

a

so much of the trading loss referred to in sub-paragraph (2) above as is unrelieved, and

b

the total amount deductible under paragraph 14 or, as the case may be, the total deemed trading loss under paragraph 15.

4

For this purpose the amount of a trading loss that is “unrelieved” means the amount of that loss reduced by—

a

any relief that was or could have been obtained by the company making a claim under section 393A(1)(a) of the Taxes Act 1988 to set the loss against profits of whatever description of the same accounting period,

b

any other relief obtained by the company in respect of the loss, including relief under section 393A(1)(b) of that Act (losses set against profits of an earlier accounting period),

c

any loss surrendered under section 403(1) of that Act (surrender of relief to group or consortium members), or

d

any loss surrendered under paragraph 15 of Schedule 20 to the Finance Act 2000 (c. 17) (entitlement to R&D tax credit).

5

No account shall be taken for this purpose of any losses—

a

brought forward from an earlier accounting period under section 393(1) of the Taxes Act 1988, or

b

carried back from a later accounting period under section 393A(1)(b) of that Act.