CIRD75700 - VRR: how relief is given: large companies

FA02/SCH13/PARA21

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% 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 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.