Corporation Tax Act 2009 section 1091

Amount of deduction

Section 1091 specifies how to calculate the amount of the tax deduction available when a large company claims relief for research and development expenditure as a deduction against its trading profits.

• This section applies when a large company claims R&D relief as a trade deduction rather than through other relief mechanisms.
• The deduction amount is calculated in accordance with a prescribed formula, providing an uplift on qualifying R&D expenditure beyond the normal 100% deduction.
• The provision was originally based on paragraph 21 of Schedule 13 to the Finance Act 2002 and was rewritten into the Corporation Tax Act 2009.
• The section was subsequently amended by section 47(2) of the Finance Act 2016.