Part 13Additional relief for expenditure on research and development
Chapter 7Relief for SMEs and large companies: vaccine research etc
Reliefs
1089SMEs: amount of deduction
1
This section applies if—
a
a company makes a claim under section 1087 for relief to which it is entitled for an accounting period, and
b
the company is a small or medium-sized enterprise in the period.
2
The amount of the deduction under that section is 40% of the company's qualifying Chapter 7 expenditure for the period (see sections 1098 and 1099).
3
The deduction is in addition to any other deduction in respect of the expenditure.
4
Subsection (2) is subject to the modification contained in section 1090 for larger SMEs.
5
Expenditure taken into account for the purpose of determining the amount of the deduction may include expenditure which is qualifying Chapter 7 expenditure for the accounting period because of section 1099(1)(b) (pre-trading expenditure).
6
This is despite the fact that the expenditure is unrelated to the trade mentioned in section 1087(4).