# Finance Act 2023, Section 4: Amount of relief for expenditure on research and development

Extent: E+W+S+N.I.

(1) The Corporation Tax Act 2009 is amended as follows.
(2) In Chapter 6A of Part 3 (trade profits: R&D expenditure credits), in section 104M (amount of R&D expenditure credit), in subsection (3), for “13%” substitute “20%”.
(3) In Chapter 2 of Part 13 (relief for SMEs: cost of R&D incurred by SME)—
(a) in section 1044 (additional deduction in calculating profits of trade), in subsection (8), for “130%” substitute “86%”,
(b) in section 1045 (alternative treatment for pre-trading expenditure: deemed trading loss), in subsection (7), for “230%” substitute “186%”,
(c) in section 1055 (tax credit: meaning of “Chapter 2 surrenderable loss”), in subsection (2)(b), for “230%” substitute “186%”, and
(d) in section 1058 (amount of tax credit), in subsection (1)(a), for “14.5%” substitute “10%”.
(4) The amendments made by this section have effect in relation to expenditure incurred on or after 1 April 2023.

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Source: https://www.legislation.gov.uk/ukpga/2023/1/section/4 (the official version)
Page: https://openlegislation.uk/finance-act-2023/section-4
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.