Chapter 8: Cap on aid for R&D
Overview
2880.This Chapter sets out the rules for calculating the cap on R&D aid for the purposes of Chapters 2 and 7. It sets out the formula for the calculation of the cap, and brings together the definitions of terms that constitute that formula.
2881.Schedule 2 (transitionals and savings) preserves the transitional provision in paragraph 7 of Schedule 10 to FA 2008. This provides that no account is to be taken, for the purpose of calculating “total R&D aid” in accordance with section 1089, of any relief or tax credit under Chapter 2 or 7 of Part 13 in respect of expenditure incurred before 1 August 2008.
Section 1113: Cap on R&D aid under Chapter 2 or 7
2882.This section imposes a cap on the total amount of R&D aid which may be claimed in respect of a project. It is based on section 29 of, and paragraph 6 of Schedule 10 to, FA 2008.
Section 1114: Total R&D aid
2883.This section sets out the rules for calculating the cap on R&D aid for a project. It is based on paragraph 1 of Schedule 10 to FA 2008.
Section 1115: “The tax credits”
2884.This section defines “the tax credits” for the purposes of the formula prescribed in section 1114. It is based on paragraph 2 of Schedule 10 to FA 2008.
Section 1116: “The actual reduction in tax liability”
2885.This section defines “the actual reduction in tax liability” for the purposes of the formula prescribed in section 1114. It is based on paragraph 3 of Schedule 10 to FA 2008.
Section 1117: “The potential relief”
2886.This section defines “the potential relief” for the purposes of the formula prescribed in section 1114. It is based on paragraph 4 of Schedule 10 to FA 2008.
Section 1118: “The notional relief”
2887.This section defines “the notional relief” for the purposes of the formula prescribed in section 1114. It is based on paragraph 5 of Schedule 10 to FA 2008.