Part 13Additional relief for expenditure on research and development
Chapter 4Relief for SMEs: subsidised and capped expenditure on R&D
Relief
1068Additional deduction in calculating profits of trade
(1)
A company is entitled to corporation tax relief for an accounting period if it meets conditions A, B and C.
(2)
Condition A is that the company is a small or medium-sized enterprise in the period.
(3)
Condition B is that the company meets the R&D threshold in the period (see section 1069).
(4)
Condition C is that the company has expenditure within subsection (5) which is allowable as a deduction in calculating for corporation tax purposes the profits for the period of a trade carried on by the company.
(5)
The expenditure within this subsection is—
(a)
qualifying Chapter 4 expenditure (see section 1070), and
(b)
capped R&D expenditure (see section 1073).
(6)
For the company to obtain the relief it must make a claim.
(7)
The relief is an additional deduction in calculating the profits of the trade for the period.
(8)
The amount of the additional deduction is 30% of the expenditure mentioned in subsection (4).
(9)
See section 1083 for provision about refunds of qualifying Chapter 4 expenditure and capped R&D expenditure.