Finance Act 2002

New reliefs E+W+S+N.I.

53 Tax relief for expenditure on research and development E+W+S+N.I.

(1) Schedule 12 to this Act has effect for accounting periods ending on or after 1st April 2002.

(2) In that Schedule—

• Part 1 makes provision about tax relief for large companies on expenditure on research and development;

• Part 2 makes provision about tax relief for small companies on expenditure on research and development that is sub-contracted to them;

• Parts 3 to 6 make provision about the form of the relief, special provision about insurance companies and supplementary and general provision.

54 Tax relief for expenditure on vaccine research etc E+W+S+N.I.

(1) Schedule 13 to this Act (which makes provision for tax relief for companies’ expenditure on vaccine research etc) has effect.

(2) Schedule 14 to this Act (which makes provision consequential on Schedule 13) has effect.

55 Gifts of medical supplies and equipment E+W+S+N.I.

(1) This section applies where, for humanitarian purposes, a company makes a gift from trading stock of medical supplies, or medical equipment, for human use.

(2) For the purposes of the Tax Acts, no amount shall be required to be brought into account as a trading receipt of the company in consequence of the making of the gift.

(3) Any costs of transportation, delivery or distribution incurred by the company in making the gift may be deducted in computing for the purposes of corporation tax the profits of the company’s trade for the accounting period in which the costs are incurred.

(4) In any case where—

(a) relief is given under subsection (2) in respect of the making of a gift and any benefit received in any accounting period by the company or any connected person is in any way attributable to the making of that gift, or

(b) relief is given under subsection (3) and any benefit so received is in any way attributable to the company’s incurring of the costs referred to in that subsection,

the company shall in respect of that period be charged to corporation tax under Case I of Schedule D or, if the company is not chargeable to corporation tax under that Case for that period, under Case VI of Schedule D on an amount equal to the amount of that benefit.

(5) Section 839 of the Taxes Act 1988 (connected persons) applies for the purposes of subsection (4).

(6) The Treasury may by order provide that this section is not to have effect in relation to medical supplies or medical equipment of such descriptions as may be specified in the order.

(7) This section has effect in relation to gifts made on or after 1 April 2002.

56 R&D tax relief for small and medium-sized enterprises: minor and consequential amendments E+W+S+N.I.

Schedule 15 to this Act (which makes minor amendments to Schedule 20 to the Finance Act 2000 (tax relief for R&D expenditure of small and medium-sized enterprises), including amendments consequential on Schedules 12 and 13 to this Act) has effect for accounting periods ending on or after 1st April 2002.

57 Community investment tax relief E+W+S+N.I.

(1) Schedule 16 to this Act (community investment tax relief) has effect.

(2) Schedule 17 to this Act (which makes provision consequential on the introduction of community investment tax relief) has effect.

(3) Schedules 16 and 17 shall come into force on such day as the Treasury may by order appoint.

(4) On and after that day—

(a) Schedule 16 shall have effect in relation to—

(i) investments made on or after such day as the Treasury may so appoint, being a day not earlier than 17th April 2002, and

(ii) claims made on or after such day as the Treasury may so appoint,

(b) paragraphs 2 to 4 of Schedule 17 shall have effect for years of assessment ending on or after the day appointed under paragraph (a)(i), and

(c) paragraph 5 of that Schedule shall have effect for accounting periods ending on or after that day.

58 Relief for community amateur sports clubs E+W+S+N.I.

(1) Schedule 18 to this Act (relief for community amateur sports clubs) has effect.

(2) Parts 1, 5 and 6 of that Schedule shall be deemed to have come into force on 1st April 2002.

Accordingly, an application under that Schedule by a club to be registered as a community amateur sports club may be granted with effect from that date or any subsequent date before the passing of this Act.

(3) Parts 2 and 4 of that Schedule have effect in relation to accounting periods ending on or after 1st April 2002.

(4) Part 3 of that Schedule has effect in relation to gifts made on or after 6th April 2002.