Part 13Additional relief for expenditure on research and development
Chapter 2Relief for SMEs: cost of R&D incurred by SME
Reliefs: further provision
1048Treatment of deemed trading loss under section 1045
(1)
This section applies if under section 1045 a company is treated as making a trading loss in an accounting period.
(2)
The trading loss may not be set off against profits of a preceding accounting period under section 393A(1)(b) or 393B(3) of ICTA unless the company is entitled to relief under section 1045 for the earlier period.
(3)
Subsection (4) applies if—
(a)
the company begins, in the accounting period or a later period, to carry on a trade, and
(b)
the trade is derived from the research and development in relation to which the relief mentioned in subsection (1) was obtained.
(4)
In that case, so far as—
(a)
the company has not obtained relief in respect of the trading loss under any other provision, and
(b)
the loss has not been surrendered under section 403(1) of ICTA (surrender of relief to group or consortium members),
the trading loss is to be treated as if it were a loss of that trade brought forward under section 393 of ICTA (relief of trading losses against future trading profits).
(5)
Subsection (4) is subject to section 1062 (restriction on losses carried forward where tax credit claimed).