F1PART 8BTrading profits taxable at the Northern Ireland rate
CHAPTER 9Research and development expenditure
Chapter 2 of Part 13 of CTA 2009
357PDTax credit under section 1054 of CTA 2009: amount of tax credit
1
Section 1058(1) of CTA 2009 (amount of tax credit) does not apply to a company in relation to a qualifying trade it carries on in an accounting period in which it is a Northern Ireland company (and the following provisions of this section apply instead).
F22
The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company has a Northern Ireland Chapter 2 surrenderable loss but does not have a mainstream Chapter 2 surrenderable loss, the lesser of—
a
the amount of the Northern Ireland Chapter 2 surrenderable loss multiplied by the relevant percentage, and
b
the amount given by section 1058(1A) of CTA 2009.
2A
Subsection (2)(b) does not apply if section 1058D of CTA 2009 (exceptions to tax credit cap) applies in relation to the company for the accounting period.
F33
The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company has a mainstream Chapter 2 surrenderable loss but does not have a Northern Ireland Chapter 2 surrenderable loss, the lesser of—
a
the amount of the mainstream Chapter 2 surrenderable loss multiplied by the percentage specified in section 1058(1)(a) of CTA 2009, and
b
the amount given by section 1058(1A) of CTA 2009.
3A
Subsection (3)(b) does not apply if section 1058D of CTA 2009 (exceptions to tax credit cap) applies in relation to the company for the accounting period.
4
The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company has both a Northern Ireland Chapter 2 surrenderable loss and a mainstream Chapter 2 surrenderable loss, the F5lesser of—
a
the sum of—
i
the amount of the Northern Ireland Chapter 2 surrenderable loss multiplied by the relevant percentage, and
ii
the amount of the mainstream Chapter 2 surrenderable loss multiplied by the percentage specified in section 1058(1)(a) of CTA 2009, and
b
the amount given by section 1058(1A) of CTA 2009.
F44A
Subsection (4)(b) does not apply if section 1058D of CTA 2009 (exceptions to tax credit cap) applies in relation to the company for the accounting period.
5
For the purposes of this section “the relevant percentage” means—
where—
A is the percentage specified in section 1058(1)(a) of CTA 2009;
B is the percentage specified in section 1044(8) of CTA 2009;
C is the adjusted section 1044 percentage as defined by section 357PC(6).
Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1