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

alexwtalexwt Member Posts: 1

Dear all,

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 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

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,

edited August 18, 2020 in Find a Wave Pro
Sign In or Register to comment.