The rules are simpler for large companies because they may not
claim vaccine tax credit.
The general rule is that when a company that is carrying on
a trade is entitled to VRR the company may claim an additional
deduction equal to 50%, reduced to 40% for expenditure incurred on
or after 1 August 2008, of the qualifying expenditure for an
accounting period.
In the exceptional case where the qualifying expenditure is
not deductible in its CT computations the company may have been
able to claim a deduction equal to 150% of the qualifying
expenditure for the accounting period. For example, a company may
incur expenditure on contributing to independent vaccine research
that is relevant R&D but is not incurred wholly &
exclusively for the purposes of its trade. If so, the company may
deduct 150% of its qualifying expenditure in the accounting period
in which it is incurred.
However, expenditure incurred on or after 1 August 2008 on
contributing to independent vaccine research will no longer attract
relief under the VRR scheme.
