Entitlement to relief under this Part
7(1)A company (“the SME”) is entitled to tax relief under this Part for an accounting period if—
(a)it qualifies as a small or medium-sized enterprise in that period, and
(b)its aggregate R&D expenditure for that period is not less than—
(i)£25,000, if the accounting period is a period of 12 months, or
(ii)such amount as bears to £25,000 the same proportion as the accounting period bears to 12 months.
(2)In this paragraph “aggregate R&D expenditure” of the SME means the aggregate of—
(a)its qualifying sub-contracted R&D expenditure (see paragraph 8), and
(b)its qualifying R&D expenditure within the meaning of Schedule 20 to the Finance Act 2000 (c. 17) (tax relief for R&D expenditure of small and medium-sized enterprises).
(3)For this purpose the SME’s aggregate R&D expenditure is “for an accounting period” if it is deductible in computing for tax purposes the profits for that period of a trade carried on by the SME (including expenditure that is so deductible by virtue of section 401 of the Taxes Act 1988).
(4)Any relief to which a company is entitled under this Part for an accounting period is in addition to any relief to which it may be entitled under Schedule 20 to the Finance Act 2000.