The Research and Development (Qualifying Bodies) (Tax) Order 2018

EXPLANATORY NOTE

(This note is not part of the Order)

This Order provides that the bodies listed in column (1) of the Schedule to this Order are prescribed bodies for the purposes of Parts 3 and 13 of the Corporation Tax Act 2009. Parts 3 and 13 of that Act provide tax credits and reliefs respectively to a company in respect of qualifying expenditure incurred on research and development.

Qualifying expenditure includes certain expenditure on research and development undertaken on the company’s behalf by “qualifying bodies” and certain expenditure incurred on contributions to independent research carried out by “qualifying bodies”. Section 1142(1) defines qualifying bodies as including bodies prescribed by order. Under section 104Y, the definition of “qualifying body” in section 1142(1) in Part 13 also applies for the purposes of Part 3. The effect of this Order is that the bodies listed in the Schedule are qualifying bodies for the purpose of Parts 3 and 13 of the Corporation Tax Act 2009 so that the appropriate tax credit or relief is available in relation to expenditure incurred on or after the date specified in relation to each body.

Article 1 provides for the citation, commencement and effect. Sections 1142(3) and (4) provide that any order made under section 1142 may have effect in relation to accounting periods beginning, or expenditure incurred, before the time the order is made.

Article 2 provides that the bodies listed in the Schedule are prescribed bodies for the purposes of Part 13.

Article 3 provides that the Research and Development (Qualifying Bodies) (Tax) Order 2012 (S.I. 2012/286) is revoked.

A Tax Information and Impact Note covering this instrument will be published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.