Part 13... expenditure on research and development
Chapter 2Relief for loss-making, R&D-intensive SMEs
Tax credit: entitlement and payment
1055Meaning of “Chapter 2 surrenderable loss”
(1)
For the purposes of this Chapter a company has a “Chapter 2 surrenderable loss” if in an accounting period—
(a)
it obtains an additional deduction under section 1044 in calculating the profits of a trade and it makes a trading loss in that period in the trade, or
(b)
it is treated as making a trading loss under section 1045.
(2)
If relief is obtained under section 1044 the amount of the Chapter 2 surrenderable loss is—
(a)
so much of the trading loss as is unrelieved, or
(b)
if less, F1186% of the qualifying Chapter 2 expenditure in respect of which the relief was obtained.
(3)
If relief is obtained under section 1045 the amount of the Chapter 2 surrenderable loss is so much of the trading loss as is unrelieved.