Part 13

... expenditure on research and development
Chapter 7

Relief for large companies: vaccine research etc

Introductory

Overview of Chapter
1085. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “qualifying R&D activity”
1086. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reliefs

Deduction in calculating profits of trade
1087. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Declaration about effect of relief
1088. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SMEs: amount of deduction
1089. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modification of section 1089 for larger SMEs
1090. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount of deduction
1091. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SMEs: deemed trading loss for pre-trading expenditure
1092. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modification of section 1092 for larger SMEs
1093. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Relief only available to SME where company is going concern
1094. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deemed trading loss: further provision

Elections under section 1092
1095. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Treatment of deemed trading loss under section 1092
1096. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Threshold

R&D threshold
1097. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying expenditure

Meaning of “qualifying Chapter 7 expenditure”
1098. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SMEs: qualifying expenditure “for” an accounting period
1099. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying expenditure “for” an accounting period
1100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying expenditure on in-house direct R&D
1101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying expenditure on contracted out R&D
1102. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax credit: entitlement and payment

Entitlement to and payment of tax credit
1103. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “Chapter 7 surrenderable loss”
1104. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount of trading loss which is “unrelieved”
1105. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax credit only available where company is going concern
1106. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount of tax credit

Amount of tax credit
1107. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total amount of company's PAYE and NIC liabilities
1108. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary

Payment of tax credit
1109. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax credit payment not income of company
1110. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Restriction on losses carried forward where tax credit claimed
1111. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax avoidance

Artificially inflated claims for relief
1112. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pt. 13 Ch. 7 omitted (with effect in accordance with s. 47(15) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 47(2)
Ss. 1092-1096 omitted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 3 para. 26
Ss. 1103-1111 omitted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 3 para. 28
S. 1097 omitted (with effect in accordance with Sch. 3 para. 39 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 3 para. 7(5)
S. 1090 omitted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 3 para. 24
S. 1089 omitted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 3 para. 24
S. 1099 omitted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 3 para. 26
Words in Pt. 13 heading omitted (with effect in relation to accounting periods beginning on or after 1.4.2024) by virtue of Finance Act 2024 (c. 3), Sch. 1 paras. 3, 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2