Corporation Tax Act 2009

1085 Overview of Chapter

(1) This Chapter provides for relief for expenditure incurred by companies (whether they are small or medium-sized enterprises or large companies) on research and development relating to vaccine or medicine research.

(2) Section 1086 defines “qualifying R&D activity” (that is, the research and development in relation to which relief under this Chapter is available).

(3) The reliefs available are—

(a) a deduction under section 1087 (the amount of which is determined under section 1089 or 1091), or

(b) if the company is a small or medium-sized enterprise, a deemed trading loss under section 1092.

(4) Section 1094 prevents a company which is a small or medium-sized enterprise from making a claim or election for relief if it is not a going concern.

(5) Sections 1095 to 1102 contain provision relevant to the reliefs available under this Chapter, namely—

(a) information about elections under section 1092 of a deemed trading loss (see section 1095),

(b) information about the treatment of a deemed trading loss (see section 1096),

(c) provision about when a company meets the R&D threshold for the purposes of obtaining relief (see section 1097),

(d) provision about when a company’s expenditure is “qualifying Chapter 7 expenditure” for those purposes and when such expenditure is “for” an accounting period (see sections 1098 to 1102).

(6) Sections 1103 to 1111 deal with R&D tax credits which can be claimed if a company—

(a) is a small or medium-sized enterprise,

(b) obtains relief under this Chapter, and

(c) makes, or is treated as making, a trading loss.

(7) Section 1112 contains an anti-avoidance provision dealing with artificially inflated claims for relief or R&D tax credits under this Chapter.

(8) See also section 1137 for provision about the accounting periods of a company which is not within the charge to corporation tax.