Deduction in computing profits of tradeU.K.
21(1)This paragraph applies where a company that does not qualify as a small or medium-sized enterprise in an accounting period is entitled to relief under this Schedule for that period.
(2)In so far as the company’s qualifying expenditure for that period is deductible in computing for tax purposes the profits for that period of a trade carried on by the company, it is entitled (on making a claim) to an additional deduction in computing the profits of the trade for that period of an amount equal to [F140%] of the qualifying expenditure.
(3)In so far as the company’s qualifying expenditure for that period is not so deductible, it may (on making a claim) treat [F2140%] of that qualifying expenditure as if it were so deductible.
[F3(3A)A claim under this paragraph must include a declaration that the availability of the relief claimed has resulted in an increase in—
(a)the amount, scope or speed of the research and development undertaken by the company, or
(b)the company's expenditure on research and development.]
(4)This paragraph is without prejudice to any other deduction in respect of the qualifying expenditure.
Textual Amendments
F1Word in Sch. 13 para. 21(2) substituted (with effect in accordance with Sch. 8 para. 3(4) of the amending Act) by Finance Act 2008 (c. 9), Sch. 8 para. 3(2)(d)
F2Word in Sch. 13 para. 21(3) substituted (with effect in accordance with Sch. 8 para. 3(4) of the amending Act) by Finance Act 2008 (c. 9), Sch. 8 para. 3(3)(c)
F3Sch. 13 para. 21(3A) inserted (with effect in accordance with s. 30(2) of the amending Act) by Finance Act 2008 (c. 9), s. 30(1)