Commentary on Sections Overview
2693.This Part gives additional relief for expenditure by a company on research and development including research and development into certain vaccines. It is based on Schedule 20 to FA 2000 and Schedules 12 and 13 to FA 2002.
2694.The relief is given in addition to any deduction allowed in calculating the company’s trade profits. For example, section 87 in Part 3 (trading income) provides a deduction for expenditure on research and development.
2695.References to research and development are abbreviated to R&D when used in a longer phrase or a long section title. See, for example, “R&D threshold” in section 1050.
2696.In this Part, the rates at which the various reliefs are stated to be available apply only if the expenditure was incurred on or after 1 August 2008. Schedule 2 (transitionals and savings) preserves this commencement rule by providing that, in relation to expenditure incurred before that date, the reliefs are available at the rates previously applicable.