Finance Act 2023

4 Amount of relief for expenditure on research and development

(1) The Corporation Tax Act 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 “13%” substitute “20%”.

(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 “130%” substitute “86%”,

(b) in section 1045 (alternative treatment for pre-trading expenditure: deemed trading loss), in subsection (7), for “230%” substitute “186%”,

(c) in section 1055 (tax credit: meaning of “Chapter 2 surrenderable loss”), in subsection (2)(b), for “230%” substitute “186%”, and

(d) in section 1058 (amount of tax credit), in subsection (1)(a), for “14.5%” substitute “10%”.

(4) The amendments made by this section have effect in relation to expenditure incurred on or after 1 April 2023.