SCHEDULES

SCHEDULE 3Relief for expenditure on R&D

Company not a going concern when in administration or liquidation

9

Chapter 2 (relief for SMEs: cost of R&D incurred by SME) is amended as follows.

10

1

Section 1046 (relief only available where company is going concern) is amended as follows.

2

At the end of subsection (2) insert—

This is subject to subsection (2A).

3

After subsection (2) insert—

2A

A company is not a going concern at any time if it is in administration or liquidation at that time.

2B

For the purposes of this section a company is in administration if—

a

it is in administration under Part 2 of the Insolvency Act 1986 or Part 3 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), or

b

a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.

2C

For the purposes of this section a company is in liquidation if—

a

it is in liquidation within the meaning of section 247 of that Act or Article 6 of that Order, or

b

a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.

11

1

Section 1057 (tax credit only available where company is going concern) is amended as follows.

2

At the end of subsection (4) insert—

This is subject to subsection (4A).

3

After subsection (4) insert—

4A

A company is not a going concern at any time if it is in administration or liquidation at that time.

4B

For the purposes of this section a company is in administration if—

a

it is in administration under Part 2 of the Insolvency Act 1986 or Part 3 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), or

b

a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.

4C

For the purposes of this section a company is in liquidation if—

a

it is in liquidation within the meaning of section 247 of that Act or Article 6 of that Order, or

b

a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.

F112

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F113

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F114

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