(1)This Part provides for corporation tax relief for expenditure on research and development.
(2)Relief under this Part is in addition to any deduction given under section 87 for the expenditure.
(3)Relief under [F1Chapter 2] is available to a company which is a small or medium-sized enterprise, in particular—
(a)Chapter 2 provides for relief where the cost of in-house direct research and development or contracted out research and development is incurred by the company,
F2(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)Chapter 6 contains further provision in relation to relief under [F4Chapter 2] , in particular—
(a)section 1081 provides for certain insurance companies to be treated as large companies,
F5(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d)section 1084 contains an anti-avoidance provision dealing with artificially inflated claims for relief or R&D tax credits (as to which, see subsection (7) below).
F6(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(7)[F7Chapter 2 also provides] for the payment of tax credits (“R&D tax credits”) where a company which is a small or medium-sized enterprise—
(a)obtains relief under Chapter 2 F8..., and
(b)makes, or is treated as making, a trading loss.
(8)Chapter 8 contains provision limiting the amount of relief available under Chapter 2 F9... in relation to expenditure on a particular research and development project.
(9)Chapter 9 contains supplementary provision, including definitions.
(10)For information about the procedure for making claims under this Part see Schedule 18 to FA 1998, in particular Part 9A of that Schedule (claims for R&D tax reliefs).
Textual Amendments
F1Words in s. 1039(3) substituted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by Finance Act 2013 (c. 29), Sch. 15 para. 13(2)(a)
F2S. 1039(3)(b)(c) omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 13(2)(b)
F3S. 1039(4) omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 13(3)
F4Words in s. 1039(5) substituted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by Finance Act 2013 (c. 29), Sch. 15 para. 13(4)(a)
F5S. 1039(5)(b)(c) omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 13(4)(b)
F6S. 1039(6) omitted (with effect in accordance with s. 47(15) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 47(3)(a)
F7Words in s. 1039(7) substituted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 16(3)(a)
F8Words in s. 1039(7)(a) omitted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 3 para. 16(3)(b)
F9Words in s. 1039(8) omitted (with effect in accordance with s. 47(15) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 47(3)(b)