UK Calculation of unrelieved loss in UK (with R&D relief)

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Dear all,

I'm trying to understand how to compute the unrelieved loss (with a specific example) when there is an R&D claim. Would be very grateful for some kind help.

I read S1056 from https://www.gov.uk/hmrc-internal-ma...les-research-and-development-manual/cird90500 which defines the unrelieved loss in this circumstance.

Take the following concrete example:

==== EXAMPLE DATA ====
Loss per accounts: 20000
Amortisation: -15000
Enhanced R&D expenditure: 80000 enhanced at 130% = 104000
Capital allowances: 100000
=> Trading loss: 209000

Total enhanced R&D expenditure: 80000 + 104000 = 184000

This company is putting in an R&D claim. The tax credit (tax relief) that could be obtained by making said claim is 14.5% of the Total enhanced R&D expenditure, i.e. 184000 @ 14.5% = 26680
==== END OF EXAMPLE DATA ====

Unrelieved loss: My understanding is that the unrelieved loss would be 209000 - 26680 = 182320

Am I correct? If not, why not and what is the correct calculation?

Many thanks in advance,
Alex.
 

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