Part 13Additional relief for expenditure on research and development

Chapter 8Cap on aid for R&D

1114Total R&D aid

For the purposes of section 1113 the total R&D aid, in respect of expenditure by a company (“the claimant”) attributable to a research and development project, is calculated as follows—

A=(TC+R+(P×CT))-(N×CT)math

where—

A is the total R&D aid,

TC is the tax credits (see section 1115),

R is the actual reduction in tax liability (see section 1116),

P is the potential relief (see section 1117),

CT is the main rate of corporation tax at the time when the total R&D aid is calculated, and

N is the notional relief (see section 1118).