Part 13Additional relief for expenditure on research and development
Chapter 7Relief for SMEs and large companies: vaccine research etc
Amount of tax credit
1107Amount of tax credit
(1)
The amount of the R&D tax credit to which a company is entitled for an accounting period is 16% of the amount of the Chapter 7 surrenderable loss for the period.
(2)
Subsection (1) is subject to the limit set out in subsection (3).
(3)
The limit is that the total of the R&D tax credits to which the company is entitled for the accounting period under Chapter 2 and this Chapter is not to exceed the total amount of the company's PAYE and NIC liabilities for payment periods ending in the accounting period (see section 1108).
(4)
The Treasury may by order replace the percentage for the time being specified in subsection (1) with a different percentage.
(5)
An order under subsection (4) may contain incidental, supplemental, consequential and transitional provision and savings.
1108Total amount of company's PAYE and NIC liabilities
(1)
The total amount of the company's PAYE and NIC liabilities for a payment period is the sum of—
(a)
amount A, and
(b)
amount B.
(2)
Amount A is the amount of income tax for which the company is required to account to an officer of Revenue and Customs for the payment period under PAYE regulations.
(3)
In calculating amount A disregard any deduction the company is authorised to make in respect of child tax credit or working tax credit.
(4)
Amount B is the amount of Class 1 national insurance contributions for which the company is required to account to an officer of Revenue and Customs for the payment period.
(5)
In calculating amount B disregard any deduction the company is authorised to make in respect of payments of statutory sick pay, statutory maternity pay, child tax credit or working tax credit.