Part 13Additional relief for expenditure on research and development
Chapter 2Relief for SMEs: cost of R&D incurred by SME
Reliefs
1044Additional deduction in calculating profits of trade
(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.
F1(3)
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(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 F2130% 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.