Calculation of unrelieved loss in UK (with R&D relief)
I'm trying to understand how to compute the unrelieved loss (with a specific example) when there is an R&D claim and how to record it in Wave. Would be very grateful for some kind help.
I read S1056 from https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird90500 which defines the unrelieved loss in this circumstance.
Take the following concrete example:
==== EXAMPLE DATA ====
Loss per accounts: 20000
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? Lastly, how do I input it in Wave?
Many thanks in advance,