SCHEDULES

C1I1SCHEDULE 13Tax relief for expenditure on vaccine research etc

Annotations:
Commencement Information
I1

Sch. 13 has effect in relation to expenditure incurred on or after 22.4.2003 by The Finance Act 2002, Schedule 13 (Appointed Day) Order 2003 (S.I. 2003/1472), art. 2 (with para. 28(1))

Modifications etc. (not altering text)
C1

Sch. 13 modified (with effect as specified in art. 2 of the commencing S.I. of the commencing S.I.) by Finance Act 2004 (c. 12), s. 53(2)(6); S.I. 2004/3268, art. 2

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

16Entitlement to tax credit

1

A company may claim a tax credit for an accounting period in which it has a surrenderable loss F3(subject to paragraph 18A).

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.

F23

The amount of the surrenderable loss is equal to the lower of A and B where—

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

  • B is—

    1. a

      if paragraph 14 applies, the sum of the amount deductible under that paragraph and so much of the qualifying expenditure mentioned in that paragraph as is non-Schedule 20 expenditure;

    2. b

      if paragraph 15 applies, the total deemed trading loss under that paragraph.

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.

F16

Paragraph 15(7) (meaning of “non-Schedule 20 expenditure”) applies for the purposes of sub-paragraph (3).