Corporation Tax (Northern Ireland) Act 2015 (c. 21)

SCHEDULES

SCHEDULE 1 U.K. Capital allowances

PART 4 U.K. Amendments of CAA 2001 relating to other allowances

Research and development U.K.

14 U.K. After section 439 insert—

“439A Qualifying expenditure incurred for purposes of NI rate activity

(1) Subsection (2) applies if—

(a) a company that does not have a Northern Ireland regional establishment incurs expenditure for the purposes of a trade,

(b) the activities for the purposes of which the expenditure is incurred would, if the company were a NIRE company, be an NI rate activity treated as a separate trade, and

(c) the company subsequently becomes a NIRE company.

(2) The expenditure is to be treated as incurred on the first day of the first chargeable period in which the company is a NIRE company.

(3) Subsection (4) applies if—

(a) a partnership that does not have a Northern Ireland regional establishment incurs expenditure for the purposes of a trade,

(b) the activities for the purposes of which the expenditure is incurred would, if the partnership were a Northern Ireland Chapter 7 firm, be an NI rate activity treated as a separate trade, and

(c) the partnership subsequently becomes a Northern Ireland Chapter 7 firm.

(4) The expenditure is to be treated as incurred on the first day of the first chargeable period in which the partnership is a Northern Ireland Chapter 7 firm.

(5) In this section “Northern Ireland regional establishment” has the same meaning as in Part 8B of CTA 2010 (see Chapter 5 of that Part as read, in relation to a partnership, with section 357WA(4) of that Act).”

15 (1) Section 450 (giving effect to allowances and charges) is amended as follows. U.K.

(2) The existing provision becomes subsection (1) of the section.

(3) After that subsection insert—

“(2) This section is subject to section 6E (giving effect to allowances and charges: NI rate activity cases).”