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.