(1)A company is entitled to corporation tax relief for an accounting period if it meets each of conditions A to D.
(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 1050).
(4)Condition C is that the company carries on a trade in the period.
(5)Condition D is that the company has qualifying Chapter 2 expenditure which is allowable as a deduction in calculating for corporation tax purposes the profits of the trade for the period.
(6)For the company to obtain the relief it must make a claim.
See section 1046 (which prevents a company from making a claim if it is not a going concern).
(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 75% of the qualifying Chapter 2 expenditure.
(9)This section is subject to section 1113 (cap on R&D aid in relation to a particular research and development project).
(10)For the meaning of “qualifying Chapter 2 expenditure” see section 1051.