Corporation Tax Act 2010 (c. 4)

[F1 PART 8B U.K. Trading profits taxable at the Northern Ireland rate

Textual Amendments

F1 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

CHAPTER 9 U.K. Research and development expenditure

Chapter 2 of Part 13 of CTA 2009 U.K.

357PD Tax credit under section 1054 of CTA 2009: amount of tax credit U.K.

(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).

[F2 (2) 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 [F3 of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period].

F4 (2A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

[F5 (3) 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 [F6 of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period].

F7 (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]

(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 [F8 lesser 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 [F9 of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period].]

F10 (4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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).

[F11 (6) Sections 1112B to 1112E of CTA 2009 (determination of cap by reference to PAYE and NIC liabilities) apply for the purposes of subsections (2)(b), (3)(b) and (4)(b) as they apply for the purposes of section 1058(1) of CTA 2009.]]

Textual Amendments

F2 S. 357PD(2)(2A) substituted for s. 357PD(2) (10.6.2021) by Finance Act 2021 (c. 26), Sch. 4 para. 2

F3 Words in s. 357PD(2)(b) substituted (1.4.2024 with effect in relation to accounting periods beginning on or after that date) by Finance Act 2024 (c. 3), Sch. 1 paras. 13(4)(d)(i), 16; S.I. 2024/286, reg. 2

F4 S. 357PD(2A) omitted (1.4.2024 with effect in relation to accounting periods beginning on or after that date) by virtue of Finance Act 2024 (c. 3), Sch. 1 paras. 13(4)(d)(ii), 16; S.I. 2024/286, reg. 2

F5 S. 357PD(3)(3A) substituted for s. 357PD(3) (10.6.2021) by Finance Act 2021 (c. 26), Sch. 4 para. 3

F6 Words in s. 357PD(3)(b) substituted (1.4.2024 with effect in relation to accounting periods beginning on or after that date) by Finance Act 2024 (c. 3), Sch. 1 paras. 13(4)(d)(i), 16; S.I. 2024/286, reg. 2

F7 S. 357PD(3A) omitted (1.4.2024 with effect in relation to accounting periods beginning on or after that date) by virtue of Finance Act 2024 (c. 3), Sch. 1 paras. 13(4)(d)(ii), 16; S.I. 2024/286, reg. 2

F8 S. 357PD(4)(a)(b) and words substituted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 4 para. 4

F9 Words in s. 357PD(4)(b) substituted (1.4.2024 with effect in relation to accounting periods beginning on or after that date) by Finance Act 2024 (c. 3), Sch. 1 paras. 13(4)(d)(i), 16; S.I. 2024/286, reg. 2

F10 S. 357PD(4A) omitted (1.4.2024 with effect in relation to accounting periods beginning on or after that date) by virtue of Finance Act 2024 (c. 3), Sch. 1 paras. 13(4)(d)(ii), 16; S.I. 2024/286, reg. 2

F11 S. 357PD(6) inserted (1.4.2024 with effect in relation to accounting periods beginning on or after that date) by Finance Act 2024 (c. 3), Sch. 1 paras. 13(4)(d)(iii), 16; S.I. 2024/286, reg. 2