SCHEDULES

SCHEDULE 13Tax relief for expenditure on vaccine research etc

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

I119Restriction on losses carried forward

1

For the purposes of section 393 of the Taxes Act 1988 (relief of trading losses against future trading profits), a company’s trading loss for a period for which it claims a tax credit under this Schedule is treated as reduced by the amount of the loss surrendered.

2

The amount of the loss surrendered is—

a

where the maximum amount of tax credit was claimed, the whole of the surrenderable loss for that period, and

b

where less than the maximum amount was claimed, a corresponding proportion of the surrenderable loss for that period.

The “maximum amount” here means the amount specified in paragraph 17(1).