1116“The actual reduction in tax liability”U.K.
(1)In section 1114 “the actual reduction in tax liability” means the sum of—
(a)amounts within subsection (2), and
(b)amounts within subsection (3).
(2)The amounts within this subsection are those by which the liability of the claimant to pay corporation tax has been reduced in any accounting period in consequence of qualifying R&D relief in respect of expenditure attributable to the research and development project.
(3)The amounts within this subsection are those by which the liability of any other company (“C”) to pay corporation tax has been reduced in any accounting period in consequence of a surrendered loss.
(4)A “surrendered loss” means a loss which—
(a)is surrendered to C by the claimant under [F1Part 5 [F2or Part 5A] of CTA 2010] (surrender of relief between members of groups and consortia), and
(b)arises in consequence of qualifying R&D relief in respect of expenditure attributable to the project.
Textual Amendments
F1Words in s. 1116(4)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 675 (with Sch. 2)
F2Words in s. 1116(4) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 136