Part 13Additional relief for expenditure on research and development
Chapter 7Relief for SMEs and large companies: vaccine research etc
Tax credit: entitlement and payment
1104Meaning of “Chapter 7 surrenderable loss”
1
For the purposes of this Chapter a company has a “Chapter 7 surrenderable loss” if in an accounting period—
a
it obtains a deduction under section 1087 in calculating the profits of a trade and it makes a trading loss in that period in the trade, or
b
it is treated as making a trading loss under section 1092.
2
If relief is obtained under section 1087 the amount of the Chapter 7 surrenderable loss is—
a
amount A, or
b
if less, amount B.
3
Amount A is so much of the trading loss as is unrelieved.
4
Amount B is the sum of—
a
the total amount deductible under section 1087, and
b
so much of the company's qualifying Chapter 7 expenditure for the period as is expenditure in respect of which the company is not entitled to relief under Chapter 2,
but this is subject to subsection (5).
5
If the company is a larger SME, amount B is 140% of so much of the company's qualifying Chapter 7 expenditure for the period as is expenditure in respect of which the company is not entitled to relief under Chapter 2.
6
If relief is obtained under section 1092 the amount of the Chapter 7 surrenderable loss is so much of the trading loss as is unrelieved.