Valid from 01/04/2009
1087Deduction in calculating profits of tradeU.K.
(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 has incurred expenditure which is qualifying Chapter 7 expenditure for the period.
(3)Condition B is that the company meets the R&D threshold in the period (see section 1097).
(4)Condition C is that the company is carrying on a trade in the period.
(5)For the company to obtain the relief it must make a claim.
(6)The relief is a deduction in calculating the profits of the trade for the period.
(7)For the amount of the deduction see—
(a)section 1089 if the company is a small or medium-sized enterprise in the period, and
(b)section 1091 if the company is a large company throughout the period.
(8)This section is subject to section 1113 (cap on total R&D aid in relation to a particular research and development project).
(9)See also—
(a)section 1088 for the declaration that a large company is required to make in a claim under this section,
(b)section 1094, which prevents a company which is a small or medium-sized enterprise from making a claim if it is not a going concern,
(c)section 1098 for the meaning of “qualifying Chapter 7 expenditure”, and
(d)sections 1099 and 1100 for the meaning of qualifying Chapter 7 expenditure “for” an accounting period.