PRT: supplement - interaction with other provisions
Supplement has a number of important applications in PRT. Apart from providing additional 35% relief to a participator for qualifying expenditure incurred up to and including its net profit period (see OT12025), expenditure upon which supplement is allowed, plus that supplement:
- makes up the safeguard capital base against which participator returns on capital are measured for the purpose of calculating any safeguard reduction (OTA75\S9(3)), see OT17550
- can be the subject of a ‘spreading election’ (OTA75\SCH3\PARA9), see OT13100
and 10% of qualifying expenditure (but not the supplement):
- can be surrendered to particular fields as a cross field allowance (FA87\S65), see OT13020.