F1PART 15DOrchestra tax relief

CHAPTER 3Orchestra tax relief

Additional deduction

1217REAmount of additional deduction

(1)

The amount of an additional deduction to which a company is entitled as a result of a claim under section 1217RD is calculated as follows.

(2)

For the first period of account during which the separate orchestral trade is carried on, the amount of the additional deduction is E, where E is—

(a)

so much of the qualifying expenditure incurred to date as is F2F3UK expenditure, or

(b)

if less, 80% of the total amount of qualifying expenditure incurred to date.

(3)

For any period of account after the first, the amount of the additional deduction is—

E − P

where E is—

  1. a

    so much of the qualifying expenditure incurred to date as is F2F4UK expenditure, or

  2. b

    if less, 80% of the total amount of qualifying expenditure incurred to date, and

P is the total amount of the additional deductions given for previous periods.

(4)

The Treasury may by regulations amend the percentage specified in subsection (2) or (3).