PART 1Income tax, corporation tax and capital gains tax

CHAPTER 3Corporation tax: general

27Amount of relief for expenditure on research and development

1

CTA 2009 is amended as follows.

2

In Chapter 6A of Part 3 (trade profits: R&D expenditure credits), in section 104M (amount of R&D expenditure credit), in subsection (3), for “10%” substitute “ 11% ”.

3

In Chapter 2 of Part 13 (relief for SMEs: cost of R&D incurred by SME)—

a

in section 1044 (additional deduction in calculating profits of trade), in subsection (8), for “125%” substitute “ 130% ”,

b

in section 1045 (alternative treatment for pre-trading expenditure: deemed trading loss), in subsection (7), for “225%” substitute “ 230% ”, and

c

in section 1055 (tax credit: meaning of “Chapter 2 surrenderable loss”), in subsection (2)(b), for “225%” substitute “ 230% ”.

4

In consequence of subsection (3), in Schedule 3 to FA 2012, omit paragraph 2(2) to (4).

5

The amendments made by this section have effect in relation to expenditure incurred on or after 1 April 2015.