Corporation Tax Act 2009 (c. 4)

Part 13 U.K. Additional relief for expenditure on research and development

Chapter 7 U.K. Relief for SMEs and large companies: vaccine research etc

Tax credit: entitlement and payment U.K.

1104 Meaning of “Chapter 7 surrenderable loss” U.K.

(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.