(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 1064).
(4)Condition C is that the company has qualifying Chapter 3 expenditure 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)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 3 expenditure.
(8)For the meaning of “qualifying Chapter 3 expenditure” see section 1065.
(9)See also—
(a)section 1082 for provision about research and development expenditure of group companies, and
(b)section 1083 for provision about refunds of qualifying Chapter 3 expenditure.