Section 1044 — Corporation Tax Act 2009: Additional deduction in calculating profits of trade

Additional deduction in calculating profits of trade 1044 1 A company is entitled to corporation tax relief for an accounting period if it meets each of conditions A to F .

2 Condition A is that the company is a small or medium-sized enterprise in the period. 2A Condition B is that the company—

a meets the R&D intensity condition in the period, or b obtained relief under this Chapter for its most recent prior accounting period of 12 months’ duration, having met the R&D intensity condition in that period. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 Condition C is that the company carries on a trade in the period.

5 Condition D is that the company has qualifying Chapter 2 expenditure which is allowable as a deduction in calculating for corporation tax purposes the profits of the trade for the period. 5A Condition E is that the company makes a loss in the trade in the period. 5B Condition F is that the company is not an ineligible company (see section 1142).

6 For the company to obtain the relief it must make a claim (see Part 9A of Schedule 18 to the FA 1998, and also sections 1045A and 1112F ) . ...

7 The relief is an additional deduction in calculating the profits of the trade for the period. The deduction is, in particular, additional to any given under section 87.

8 The amount of the additional deduction is 86% of the qualifying Chapter 2 expenditure. 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10 For the meaning of “qualifying Chapter 2 expenditure” see section 1051.