Section 1042B | Entitlement to credit

(1)A company is entitled to an R&D expenditure credit for an accounting period if it meets conditions A, B and C in this section.

(2)Condition A is that the company carries on a trade in the period.

(3)Condition B is that the company incurs expenditure that is both—

(a)allowable as a deduction in calculating for corporation tax purposes the profits of the trade for the period, and

(b)qualifying Chapter 1A expenditure by virtue of section 1042D, 1042E or 1042F.

(4)Condition C is that the company is not an ineligible company (see section 1142).

(5)The amount of the credit is the relevant percentage (see section 1042G) of the expenditure that satisfies condition B.