12 Expenditure incurred before qualifying activity carried onU.K.
[F1(1)] For the purposes of this Part, expenditure incurred for the purposes of a qualifying activity by a person about to carry on the activity is to be treated as if it had been incurred by him on the first day on which he carries on the activity.
[F2(2)Subsection (3) 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.
(3)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.
(4)Subsection (5) 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.
(5)The expenditure is to be treated for the purposes of this Part so far as relating to the corporate partner calculation as incurred on the first day of the first chargeable period in which the partnership is a Northern Ireland Chapter 7 firm.
(6)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).]
Textual Amendments
F1S. 12 renumbered as s. 12(1) (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), Sch. 1 para. 3(2)
F2S. 12(2)-(6) inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), Sch. 1 para. 3(3)