Corporation Tax Act 2009

1068 Additional deduction in calculating profits of trade

(1) A company is entitled to corporation tax relief for an accounting period if it meets conditions A, B and C.

(2) Condition A is that the company is a small or medium-sized enterprise in the period.

(3) Condition B is that the company meets the R&D threshold in the period (see section 1069).

(4) Condition C is that the company has expenditure within subsection (5) which is allowable as a deduction in calculating for corporation tax purposes the profits for the period of a trade carried on by the company.

(5) The expenditure within this subsection is—

(a) qualifying Chapter 4 expenditure (see section 1070), and

(b) capped R&D expenditure (see section 1073).

(6) For the company to obtain the relief it must make a claim.

(7) The relief is an additional deduction in calculating the profits of the trade for the period.

(8) The amount of the additional deduction is 30% of the expenditure mentioned in subsection (4).

(9) See section 1083 for provision about refunds of qualifying Chapter 4 expenditure and capped R&D expenditure.