ReliefU.K.
1074Additional deduction in calculating profits of tradeU.K.
(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 large company throughout the period.
(3)Condition B is that the company meets the R&D threshold in the period (see section 1075).
(4)Condition C is that the company carries on a trade in the period.
(5)For the company to obtain the relief it must make a claim.
(6)The relief is an additional deduction in calculating the profits of the trade for the period.
(7)The amount of the additional deduction is 30% of the qualifying Chapter 5 expenditure which—
(a)is incurred by the company, and
(b)is allowable as a deduction in calculating for corporation tax purposes the profits of the trade for the period.
(8)For the meaning of “qualifying Chapter 5 expenditure” see section 1076.
(9)See also—
(a)section 1080 for special provision about insurance companies,
(b)section 1082 for provision about research and development expenditure of group companies, and
(c)section 1083 for provision about refunds of qualifying Chapter 5 expenditure.