Corporation Tax Act 2009 section 1087

Deduction in calculating profits of trade

Section 1087 allows a company to claim a deduction against its trading profits for qualifying expenditure on vaccine research, with different relief amounts depending on whether the company is a small or medium-sized enterprise or a large company.

• Companies that incur qualifying expenditure on vaccine research can claim a deduction when calculating their trading profits for corporation tax purposes.
• The relief is available to both small or medium-sized enterprises and large companies, though the amount of relief differs depending on company size.
• Only companies that are liable to corporation tax can claim this relief — it does not extend to other types of taxpayer.
• Small or medium-sized enterprises have an additional option: they may elect to create a trading loss in respect of pre-trading vaccine research expenditure under section 1092.