Question 1

Section A

BioGenix Ltd is a qualifying Small and Medium-sized Enterprise (SME) for Research and Development (R&D) purposes. During the year ended 31 March 2024, it incurred £100,000 of qualifying R&D revenue expenditure.

What is the total deduction BioGenix Ltd can claim against its trading profits for this expenditure?

Accepted Answer

Identify the current SME R&D enhancement rate (86% for expenditure from 1 April 2023). Add the enhancement to the original expenditure to find the total deduction.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Using outdated enhancement rates (e.g., 130%) or only claiming the enhancement amount rather than the total deduction.

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA TX — Taxation Practice Exam 2

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