Commentary

B3.706 Method of making allowances

Business tax
Business tax | Commentary

B3.706 Method of making allowances

Business tax | Commentary

B3.706 Method of making allowances

R&D allowances are given for a relevant chargeable period1, which is:

  1.  

    (a)     the chargeable period in which the expenditure is incurred; or

  2.  

    (b)     if it was incurred in a period before the relevant trade is set up and commenced, that period2.

The allowance is treated as an expense of the trade, and any balancing charge is treated as a receipt of the trade3.

Where additional VAT liability is treated as additional expenditure under the provisions described in B3.703, any allowance arising is available for the chargeable

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