Corporation Tax Act 2009 (c. 4)

Part 13 Additional relief for expenditure on research and development

Chapter 8 Cap on aid for R&D

1114 Total 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—

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).