SCHEDULES
C1I1SCHEDULE 13Tax relief for expenditure on vaccine research etc
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—
- 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;
- b
if paragraph 15 applies, the total deemed trading loss under that paragraph.
- a
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).
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))