Part 13

... expenditure on research and development
Chapter 1

Introduction

Introductory

Overview of Part
1039
1
This Part provides relief for companies that invest in research and development.
2
Chapter
1A
makes relief available in the form of a credit in respect of expenditure on research and development, which becomes payable in certain circumstances.
3
Chapter 2 makes alternative relief available, in the form of—
a
an additional deduction in calculating trading profits, and
b
a payable credit,
to small or medium-sized enterprises that invest heavily in research and development and do not make associated trading profits.
4
Chapter 8 limits the reliefs provided by Chapters
1A
and 2.
5
Chapter 9 contains definitions and other supplementary provision.

No overlapping claims under Chapters 1A and 2
1040
A company is not entitled to relief under Chapter 2 in respect of expenditure if it is entitled to, and claims, relief under Chapter
1A
in respect of that expenditure.

Restriction on claiming other tax reliefs
1040ZA
A1
For provision prohibiting audiovisual expenditure credit or video game expenditure credit being given where relief is available under this Part, see sections
1179DT
and
1179FL
.
1
For provision prohibiting relief being given under this Part and under Chapter 3 of Part 15 (film tax relief), see section 1195(3A).
2
For provision prohibiting relief being given under this Part and under Chapter 3 of Part 15A (television tax relief), see section 1216C(4).
3
For provision prohibiting relief being given under this Part and under Chapter 3 of Part 15B (video games tax relief), see section 1217C(4).
4
For provision prohibiting relief being given under this Part and under section 1217H or 1217K (theatrical productions: additional deduction or theatre tax credit), see section 1217JA(2).
5
For provision prohibiting relief being given under this Part and under Chapter 3 of Part 15E (museums and galleries exhibition tax relief), see section 1218ZCG(2).

R&D expenditure credits
1040A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

“Research and development”
1041
In this Part “research and development” has the meaning given by section 1138 of CTA 2010.

“Relevant research and development”
1042
1
In this Part “relevant research and development”, in relation to a company, means research and development—
a
related to a trade carried on by the company, or
b
from which it is intended that a trade to be carried on by the company will be derived.
2
Research and development related to a trade carried on by a company includes—
a
research and development which may lead to or facilitate an extension of the trade, and
b
research and development of a medical nature which has a special relation to the welfare of workers employed in the trade.
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter 1A

R&D expenditure credit

Introductory

Overview of Chapter
1042A
1
This Chapter provides an entitlement to a credit (called an “R&D expenditure credit”) in respect of certain expenditure on research and development.
2
Section
1042B
and
1042C
make the basic provision setting out what the entitlement is and how it is to be realised.
3
Sections
1042D
to
1042F
describe the expenditure by reference to which the entitlement arises.
4
Section
1042G
sets the percentage of that expenditure that is translated into the credit.
5
Sections
1042H
to
1042N
make provision about what happens when a company obtains the credit (in particular, about how the credit is to be accounted for and applied or paid).
6
Section
1042O
makes provision about how the expenditure credit operates in the context of a basic life assurance and general annuity business carried on by an insurance company.
7
This Chapter has to be read with Chapter 8, which limits the entitlement given by this Chapter in various respects.

Entitlement and claims

Entitlement to credit
1042B
1
A company is entitled to an R&D expenditure credit for an accounting period if it meets conditions A, B and C in this section.
2
Condition A is that the company carries on a trade in the period.
3
Condition B is that the company incurs expenditure that is both—
a
allowable as a deduction in calculating for corporation tax purposes the profits of the trade for the period, and
b
qualifying Chapter
1A
expenditure by virtue of section
1042D
,
1042E
or
1042F
.
4
Condition C is that the company is not an ineligible company (see section 1142).
5
The amount of the credit is the relevant percentage (see section
1042G
) of the expenditure that satisfies condition B.

Claiming the credit
1042C
1
To obtain an R&D expenditure credit the company must make a claim (see Part 9A of Schedule 18 to the FA 1998).
2
A company may not make the claim (“the RDEC claim”) after the end of the claim notification period unless—
a
the company has made an R&D claim during the period of three years ending with the last day of the claim notification period,
b
the company makes a claim notification in respect of the RDEC claim within the claim notification period, or
c
the accounting period in respect of which the RDEC claim is made falls within the same period of account as another accounting period in respect of which the company has made an R&D claim or a claim notification.
3
For the purposes of subsection
(2)
(a)
, ignore any R&D claim for an accounting period beginning before 1 April 2023 that is included in the company’s company tax return only by virtue of an amendment made on or after that date (see paragraph 83B(2) of Schedule 18 to FA 1998).

Qualifying expenditure

Qualifying expenditure: in-house R&D
1042D
1
Expenditure of a company is qualifying Chapter
1A
expenditure if it meets each of conditions A to D in this section.
2
Condition A is that the expenditure is attributable to relevant research and development undertaken by the company itself.
3
Condition B is that the expenditure is—
a
incurred on staffing costs (see section 1123),
b
incurred on software, data licences, cloud computing services or consumable items (see section 1125),
c
qualifying expenditure on externally provided workers (see section 1127), or
d
incurred on relevant payments to the subjects of a clinical trial (see section 1140).
4
Condition C is that the research and development is not contracted out to the company (see section
1133
).
5
Condition D is that the expenditure is not attributable to an exempt foreign permanent establishment (see section
1138B
).
6
See sections 1124, 1126 to 1126B and 1132 for provision about when expenditure within subsection
(3)
(a)
,
(b)
or
(c)
is attributable to relevant research and development.

Qualifying expenditure: payments for contracted out R&D
1042E
1
Expenditure of a company is qualifying Chapter
1A
expenditure if it meets each of conditions A to D in this section.
2
Condition A is that the expenditure is attributable to relevant research and development contracted out by the company (see section
1133
).
3
Condition B is that the research and development is not also contracted out to the company (see section
1133
).
4
Condition C is that the expenditure is incurred in making the qualifying element of a contractor payment (see sections 1133 to 1136).
5
Condition D is that the expenditure is not attributable to an exempt foreign permanent establishment (see section
1138B
).
6
See sections 1124, 1126 to 1126B and 1132 for provision about when particular kinds of expenditure are attributable to relevant research and development.

Qualifying expenditure: activity as contractor for irrelievable client
1042F
1
Expenditure of a company is qualifying Chapter
1A
expenditure if it meets conditions A, B and C in this section.
2
Condition A is that the expenditure is attributable to relevant research and development contracted out to the company (see section
1133
).
3
Condition B is that subsection
(4)
is satisfied by each person by whom the research and development is contracted out to the company.
4
A person satisfies this subsection if—
a
the person is an ineligible company (see section 1142), or
b
the person is not, in relation to the contracting out of the research and development by that person, acting in the course of a trade, profession or vocation within the charge to tax.
5
Condition C is that the expenditure would, but for the fact that the research and development is contracted out to the company, be qualifying Chapter
1A
expenditure by virtue of section
1042D
or
1042E
.

Rate of credit

Percentage of qualifying expenditure translated into credit
1042G
1
The relevant percentage for the purposes of section
1042B
(5)
is—
a
49%, in the case of a ring fence trade within the meaning given by section 277 of CTA 2010, or
b
20%, in any other case.
2
The Treasury may by regulations replace the percentage for the time being specified in subsection
(1)
(a)
or
(b)
with a different percentage.

Treatment of credit: main provisions

Expenditure credit to count as taxable receipt
1042H
If a company is entitled to, and claims, an R&D expenditure credit for an accounting period, it must bring the amount of the credit into account as a receipt in calculating for corporation tax purposes the profits for the period of the trade concerned.

Redemption of value of expenditure credit
1042I
If a company is entitled to, and claims, an R&D expenditure credit for an accounting period, the credit is to be dealt with as follows.
- Step 1
The amount of the credit is to be applied in discharging any liability of the company to pay corporation tax for the accounting period.
- Step 2
If there is a notional tax deduction (see section
1042K
), it is to be applied to any amount remaining after step 1.
- Step 3
If the amount remaining after step 2 exceeds the cap by reference to the company’s PAYE and NIC liabilities for the accounting period (see section
1112B
), the excess is to be deducted.
- Step 4
Any amount remaining after step 3 is to be applied in discharging any liability of the company to pay corporation tax for any other accounting period.
- Step 5
If the company is a member of a group, it may surrender the whole or part of any amount remaining after step 4 to any other member of the group (as to which see section
1042N
).
- Step 6
Any amount remaining after step 5 is to be applied in discharging any other liability of the company to pay a sum to the Commissioners for His Majesty’s Revenue and Customs—
  1. under or by virtue of an enactment, or
  2. under an agreement made in connection with any person’s liability to make a payment to the Commissioners under or by virtue of an enactment.
- Step 7
Any amount remaining after step 6 is (subject to sections
1112F
and
1112H
) to be paid to the company by an officer of Revenue and Customs.

Treatment of deduction to comply with PAYE and NIC limit
1042J
1
This section applies if an amount is deducted under step 3 in section
1042I
.
2
The amount is to be added to the amount of R&D expenditure credit to which the company is entitled for its next accounting period (including where that amount would otherwise be nil).

Notional tax deduction

Amount of notional tax deduction
1042K
1
This section determines the amount of the notional tax deduction for the purposes of step 2 in section
1042I
.
2
The amount of the deduction is the amount (if any) by which the amount remaining after step 1 in section
1042I
exceeds the amount produced by deducting the notional tax charge from the initial amount of the expenditure credit (that is, its amount before the application of that step).
3
Subsections
(4)
and
(5)
apply if the trade concerned is not a ring fence trade.
4
The notional tax charge is the amount of corporation tax that would be chargeable on the initial amount of the expenditure credit if it were an amount of profits for the accounting period on which corporation tax was chargeable at the applicable rate.
5
The applicable rate is—
a
the main rate, if the company has profits for the accounting period that—
i
are chargeable to corporation tax at the main rate, and
ii
would be so even if they did not include any amount brought into account under section
1042H
;
b
in any other case, the standard small profits rate.
6
Subsections
(7)
and
(8)
apply if the trade concerned is a ring fence trade.
7
The notional tax charge is the sum of—
a
the amount of corporation tax that would be chargeable on the initial amount of the expenditure credit if it were an amount of ring fence profits for the accounting period on which corporation tax was chargeable at the applicable rate, and
b
the amount of the supplementary charge that would be chargeable on the initial amount of the expenditure credit if it were an amount of adjusted ring fence profits for the accounting period (see Chapters 6 to 9 of Part 8 of CTA 2010).
8
The applicable rate is—
a
the main ring fence profits rate, if the company has profits for the accounting period that—
i
are chargeable to corporation tax at the main ring fence profits rate, and
ii
would be so even if they did not include any amount brought into account under section
1042H
;
b
in any other case, the small ring fence profits rate.
9
For the purposes of this section, the initial amount of an expenditure credit is to be treated as excluding any amount added under section
1042J
.
10
In this section—
- “
adjusted ring fence profits
” has the meaning given by section 330(2) of CTA 2010;
- “
main rate
” means the rate referred to in section 3(1) of CTA 2010;
- “
main ring fence profits rate
” means the rate referred to in section 279A(1) of CTA 2010;
- “
ring fence profits
” has the meaning given by section 276 of CTA 2010;
- “
ring fence trade
” has the meaning given by section 277 of CTA 2010;
- “
small ring fence profits rate
” means the rate referred to in section 279A(3) of CTA 2010;
- “
standard small profits rate
” means the rate referred to in section 18A(1) of CTA 2010.

Treatment of notional tax deduction
1042L
1
This section applies if an amount is deducted under step 2 in section
1042I
.
2
If the company is a member of a group, it may, in respect of the accounting period in which the expenditure credit arises, surrender the whole or part of the deducted amount to any other member of the group (as to which see section
1042N
).
3
To the extent that the deducted amount is not surrendered under subsection
(2)
, it is to be applied in discharging any liability of the company to pay corporation tax for any subsequent accounting period.

Priority of discharge
1042M
1
An amount within subsection
(2)
is to be applied as described in that subsection before any amount within subsection
(3)
is applied as described in that subsection.
2
An amount is within this subsection if it is to be applied under—
a
section
1042L
(3)
, or
b
section
1042N
(3)
as it applies in relation to an amount surrendered under section
1042L
(2)
,
in discharging the liability of a company to pay corporation tax for an accounting period.
3
An amount is within this subsection if it is to be (or would but for subsection
(1)
be) applied under—
a
step 4 in section
1042I
, or
b
section
1042N
(3)
as it applies in relation to an amount surrendered under step 5 in section
1042I
,
in discharging the same liability as an amount within subsection
(2)
.

Intra-group surrenders

Amounts surrendered to other group companies
1042N
1
Subsection
(3)
applies if an amount of expenditure credit is surrendered by the qualifying company to another member of its group under step 5 in section
1042I
or under section
1042L
(2)
.
2
For the purposes of that subsection—
a
the accounting period in respect of which the surrender is made is “the surrender AP”;
b
an accounting period of the other group member is an “overlapping AP” if it overlaps with the surrender AP to any extent.
3
The surrendered amount is to be dealt with as follows.
- Step 1
Select an overlapping AP.
- Step 2
Calculate the proportion of the overlapping AP that overlaps with the surrender AP, and apply that proportion to the amount of corporation tax payable by the other group member for that overlapping AP.
- Step 3
Calculate the proportion of the surrender AP that overlaps with the overlapping AP, and apply that proportion to the surrendered amount.
- Step 4
The amount given by step 3 is to be applied in discharging the liability of the other group member to pay the corporation tax mentioned in step 2, up to the amount given by that step.
- Step 5
Select another overlapping AP, if there is one, and repeat steps 2 to 4.
- Step 6
If any of the surrendered amount remains after steps 2 to 4 have been taken in relation to each overlapping AP, the remainder is to be treated for the purposes of section
1042I
or (as the case may be) section
1042L
(2)
as if it had not been surrendered as mentioned in subsection
(1)
.
4
A surrender to which subsection
(3)
applies is not to be—
a
taken into account in determining, for corporation tax purposes, the profits or losses of the qualifying company or the other group member, or
b
regarded for corporation tax purposes as the making of a distribution.

Basic life assurance and general annuity businesses

Adaptation of entitlement for certain insurance businesses
1042O
1
This section applies if—
a
for an accounting period, an insurance company is charged to tax in respect of its basic life assurance and general annuity business in accordance with the I-E rules, and
b
the calculation of the company’s charge to tax for the period in respect of that business does not involve the calculation of any BLAGAB trade profit or loss of the company.
2
The reference in section
1042B
(3)
(a)
to expenditure that is allowable as a deduction in calculating the profits of the trade for an accounting period is to be read as a reference to expenditure that would be so allowable if the company were to calculate its BLAGAB trade profit or loss for the period.
3
The reference in section
1042H
to calculating the profits of the trade is to be read as a reference to calculating the I-E profit of the basic life assurance and general annuity business carried on by the company.
4
Any receipt to be brought into account by virtue of this section is to be treated for the purposes of section 92 of FA 2012 (certain BLAGAB trading receipts to count as deemed I-E receipts) as if it had been taken into account in calculating the company’s BLAGAB trade profit or loss for the period.
5
In this section, “BLAGAB trade profit” and “BLAGAB trade loss” have the meanings given by section 136 of FA 2012.
Chapter 2

Relief for loss-making, R&D-intensive SMEs

Introductory

Overview of Chapter
1043
1
This Chapter provides relief for companies that are small or medium-sized enterprises, invest heavily in research and development, and do not make associated trading profits.
2
Section 1044 provides relief in the form of an additional deduction where the investment is made in the course of a loss-making trade.
3
Section 1045 provides relief in the form of a deemed trading loss where the investment is made the course of activities that do not yet amount to the carrying on of a trade.
4
Section
1045ZA
specifies the intensity of spending on research and development needed for a company to qualify for relief under section 1044 or 1045.
5
Sections 1047 and 1048 make provision about the procedure for claiming, and the effect of, relief under section 1045.
6
Section 1049 restricts consortium relief where relief under section 1044 or 1045 is claimed.
7
Sections 1051 to 1053 describe the expenditure by reference to which the entitlement to relief under section 1044 or 1045 arises.
8
Sections 1054 to 1062 provide further relief in the form of a payable credit (called an “R&D tax credit”) in respect of trading losses increased or generated by relief under section 1044 or 1045.
9
Section
1062A
excludes certain insurance companies.
10
This Chapter has to be read with Chapter 8, which limits the entitlements given by this Chapter in various respects.

Reliefs

Additional deduction in calculating profits of trade
1044
1
A company is entitled to corporation tax relief for an accounting period if it meets each of conditions A to F.
2
Condition A is that the company is a small or medium-sized enterprise in the period.
2A
Condition B is that the company—
a
meets the R&D intensity condition in the period, or
b
obtained relief under this Chapter for its most recent prior accounting period of 12 months’ duration, having met the R&D intensity condition in that period.
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Condition C is that the company carries on a trade in the period.
5
Condition D is that the company has qualifying Chapter 2 expenditure which is allowable as a deduction in calculating for corporation tax purposes the profits of the trade for the period.
5A
Condition E is that the company makes a loss in the trade in the period.
5B
Condition F is that the company is not an ineligible company (see section 1142).
6
For the company to obtain the relief it must make a claim (see Part 9A of Schedule 18 to the FA 1998, and also sections 1045A and 1112F).
...
7
The relief is an additional deduction in calculating the profits of the trade for the period. The deduction is, in particular, additional to any given under section 87.
8
The amount of the additional deduction is 86% of the qualifying Chapter 2 expenditure.
9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
For the meaning of “qualifying Chapter 2 expenditure” see section 1051.

Alternative treatment for pre-trading expenditure: deemed trading loss
1045
1
A company is entitled to corporation tax relief for an accounting period if it meets each of conditions A to D.
2
Condition A is that the company is a small or medium-sized enterprise in the period.
2A
Condition B is that the company—
a
meets the R&D intensity condition in the period, or
b
obtained relief under this Chapter for its most recent prior accounting period of 12 months’ duration, having met the R&D intensity condition in that period.
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Condition C is that the company has incurred qualifying Chapter 2 expenditure in the period which—
a
is not allowable as a deduction in calculating for corporation tax purposes the profits of a trade carried on by it at the time the expenditure was incurred, but
b
would have been so allowable had it, at that time, been carrying on a trade consisting of the activities in respect of which the expenditure was incurred.
4A
Condition D is that the company is not an ineligible company (see section 1142).
5
For the company to obtain the relief it must make an election (see section 1047, and also section 1112F).
...
6
The relief is that the company is treated as if it had made a trading loss in the period.
7
The trading loss is equal to 186% of the qualifying Chapter 2 expenditure.
8
If a company makes an election under this section in respect of qualifying Chapter 2 expenditure, section 61 (pre-trading expenses) does not apply to the expenditure.
9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
For the meaning of “qualifying Chapter 2 expenditure” see section 1051.
11
See also section 1137, which makes provision about the accounting periods of a company which is not within the charge to corporation tax.

R&D intensity condition
1045ZA
1
This section determines whether a company meets the R&D intensity condition in an accounting period for the purposes of sections 1044 and 1045.
2
If the company is not connected with another company, the company meets the condition if its relevant R&D expenditure for the period amounts to at least 30% of its total relevant expenditure for the period.
3
If the company is connected with at least one other company, the company meets the condition if the connected companies’ relevant R&D expenditure for the period amounts to at least 30% of the connected companies’ total relevant expenditure for the period.
4
In subsection
(3)
, “
the connected companies
” refers to the company to which this section is being applied and each company with which it is connected; and the references to their expenditure are to the aggregate of each of their expenditures.
5
Expenditure forms part of a company’s total relevant expenditure for an accounting period if—
a
in accordance with generally accepted accounting practice, it is brought into account in calculating the profits for the period of any trade carried on by the company,
b
it is expenditure in respect of which the company is, for the period, entitled to relief under section 1045, or
c
in reliance on section 1308(2) (expenditure brought into account in determining value of intangible asset allowable as a deduction), it is brought into account in calculating the company’s profits for the period for corporation tax purposes.
6
But—
a
expenditure of a company is to be ignored for the purposes of subsection
(5)
if it consists of a payment, or other transfer of value, to another company with which the company is connected, and
b
where expenditure forms part of a company's total relevant expenditure by virtue of subsection
(5)
(c)
, a deduction brought into account as mentioned in subsection
(5)
(a)
is to be ignored for the purposes of that provision to the extent that a corresponding deduction for corporation tax purposes is prevented by section 1308(5).
7
Expenditure forms part of a company’s relevant R&D expenditure for an accounting period if—
a
it forms part of the company’s total relevant expenditure for the period, or would do but for subsection
(6)
(a)
, and
b
it is expenditure in respect of which the company would, assuming that it met the R&D intensity condition, be entitled to relief under this Chapter for the period.
8
For the purposes of this section in its application to an accounting period, a company is to be treated as connected with another company if it is connected with that company on any day within the period.

Reliefs: further provision

Requirement to make a claim notification
1045A
1
A company may not make a claim under section 1044(6) (an “additional deduction claim”) after the end of the claim notification period unless—
a
the company has made an R&D claim during the period of three years ending with the last day of the claim notification period,
b
the company makes a claim notification in respect of the additional deduction claim within the claim notification period, or
c
the accounting period in respect of which the additional deduction claim is made falls within the same period of account as another accounting period in respect of which the company has made an R&D claim or a claim notification.
2
For the purposes of
subsection (1)
(a)
ignore any R&D claim for an accounting period beginning before 1 April 2023 that is included in the company’s company tax return only by virtue of an amendment made on or after that date (see paragraph 83B(2) of Schedule 18 to FA 1998).

Relief only available where company is going concern
1046. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Elections under section 1045
1047
1
An election under section 1045 must specify the accounting period in respect of which it is made.
2
The election must be made by notice in writing to an officer of Revenue and Customs.
3
The notice must be given before the end of the period of two years beginning immediately after the end of the accounting period to which the election relates.

Treatment of deemed trading loss under section 1045
1048
1
This section applies if under section 1045 a company is treated as making a trading loss in an accounting period (“the deemed loss-making period”).
2
The trading loss may not be deducted from profits of a preceding accounting period under section 37(3)(b) or 42 of CTA 2010 unless the company is entitled to relief under section 1045 for the earlier period.
3
Subsection (4) applies if—
za
the deemed loss-making period begins before 1 April 2017,
a
the company begins, in the deemed loss-making period or a later period, to carry on a trade, and
b
the trade is derived from the research and development in relation to which the relief mentioned in subsection (1) was obtained.
4
In that case, so far as—
a
the company has not obtained relief in respect of the trading loss under any other provision, and
b
the loss has not been surrendered under Part 5 of CTA 2010 (group relief),
the trading loss is to be treated as if it were a loss of that trade brought forward under section 45 of CTA 2010 (relief of trading losses against future trading profits).
4A
Subsection (4B) applies if—
a
the deemed loss-making period begins on or after 1 April 2017,
b
the company—
i
begins to carry on a trade in the deemed loss-making period which it continues to carry on in the following accounting period, or
ii
begins to carry on a trade in an accounting period after the deemed-loss making period, and
c
the trade is derived from the research and development in relation to which the relief mentioned in subsection (1) was obtained.
4B
In that case, so far as—
a
the company has not obtained relief in respect of the trading loss under any other provision, and
b
the loss has not been surrendered under Part 5 of CTA 2010 (group relief) (surrender of relief to group or consortium members),
the trading loss is to be treated as if it were a loss of that trade brought forward under the relevant provision (see subsection (4C)) to the relevant period (see subsection (4D).
4C
In subsection (4B) “the relevant provision” is—
a
section 45A(4) of CTA 2010 if—
i
the trade is not a ring fence trade within the meaning of Part 8 of CTA 2010 (see section 277 of that Act), and
ii
relief under section 37 of CTA 2010 would not be unavailable by reason of section 44 of that Act for a loss (assuming there was one) made in the trade in the relevant period (see subsection (4D), and
b
section 45B(2) of CTA 2010 if either of the conditions in paragraph (a) is not met.
4D
In subsection (4B) and (4C) “
the relevant period
” means—
a
in a case where the company began the trade in the deemed loss-making period and continued to carry on the trade in the following accounting period, that following accounting period, and
b
in a case where the company began the trade in an accounting period after the deemed loss-making period, the accounting period in which the company began the trade.
5
Subsections (4) and (4B) are subject to section 1062 (restriction on losses carried forward where tax credit claimed).

Restriction on consortium relief
1049
1
This section applies if—
a
a company claims relief under section 1044 or elects to obtain relief under section 1045 in respect of an accounting period,
b
at any time during the period the company is owned by a consortium, and
c
at least one of the members of the consortium is a large company.
2
The amount of the relief obtained in respect of the accounting period may not be surrendered by the company to another company, for the purposes of a consortium group relief claim, unless the other company is a small or medium-sized enterprise.
3
A “consortium group relief claim” means a claim to group relief based on consortium condition 1, 2 or 3 in sections 132 and 133 of CTA 2010 (group relief available between members of consortia).

Threshold

R&D threshold
1050. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying expenditure

Qualifying Chapter 2 expenditure
1051
For the purposes of this Part a company's “qualifying Chapter 2 expenditure” is such of its expenditure as is qualifying Chapter 2 expenditure by virtue of section 1052, 1053 or 1053A.

Qualifying expenditure: in-house R&D
1052
1
Expenditure of a company is qualifying Chapter 2 expenditure if it meets each of conditions A to D in this section.
2
Condition A is that the expenditure is attributable to relevant research and development undertaken by the company itself.
3
Condition B is that the expenditure is—
a
incurred on staffing costs (see section 1123),
b
incurred on software, data licences, cloud computing services or consumable items (see section 1125),
c
qualifying expenditure on externally provided workers (see section 1127), or
d
incurred on relevant payments to the subjects of a clinical trial (see section 1140).
4
Condition C is that the research and development is not contracted out to the company (see section
1133
).
5
Condition D is that the expenditure is not attributable to an exempt foreign permanent establishment (see section
1138B
).
6
See sections 1124, 1126 to 1126B and 1132 for provision about when expenditure within subsection
(3)
(a)
,
(b)
or
(c)
is attributable to relevant research and development.

Qualifying expenditure: payments for contracted out R&D
1053
1
Expenditure of a company is qualifying Chapter 2 expenditure if it meets each of conditions A to D in this section.
2
Condition A is that the expenditure is attributable to relevant research and development contracted out by the company (see section
1133
).
3
Condition B is that the research and development is not also contracted out to the company (see section
1133
).
4
Condition C is that the expenditure is incurred in making the qualifying element of a contractor payment (see sections 1133 to 1136).
5
Condition D is that the expenditure is not attributable to an exempt foreign permanent establishment (see section
1138B
).
6
See sections 1124, 1126 to 1126B and 1132 for provision about when particular kinds of expenditure are attributable to relevant research and development.

Qualifying expenditure: activity as contractor for irrelievable client
1053A
1
Expenditure of a company is qualifying Chapter 2 expenditure if it meets conditions A, B and C in this section.
2
Condition A is that the expenditure is attributable to relevant research and development contracted out to the company (see section
1133
).
3
Condition B is that subsection
(4)
is satisfied by each person by whom the research and development is contracted out to the company.
4
A person satisfies this subsection if—
a
the person is an ineligible company (see section 1142), or
b
the person is not, in relation to the contracting out of the research and development by that person, acting in the course of a trade, profession or vocation within the charge to tax.
5
Condition C is that the expenditure would, but for the fact that the research and development is contracted out to the company, be qualifying Chapter 2 expenditure by virtue of section
1052
or
1053
.

Tax credit: entitlement and payment

Entitlement to and payment of tax credit
1054
1
A company is entitled to an R&D tax credit for an accounting period if it has a Chapter 2 surrenderable loss in the period (see section 1055).
2
For the company to obtain an R&D tax credit in respect of all or part of the Chapter 2 surrenderable loss it must make a claim (see Part 9A of Schedule 18 to the FA 1998, and also sections 1054A and 1112F).
...
3
The amount of an R&D tax credit to which the company is entitled is determined in accordance with section 1058.
4
If a company makes a claim for an R&D tax credit to which it is entitled for an accounting period, an officer of Revenue and Customs must pay to the company the amount of the credit.
This is subject to section 1112H.
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
See also section 1062, which restricts the carry forward of losses where a company claims an R&D tax credit.

Requirement to make a claim notification
1054A
1
A company may not make a claim under section 1054(2) (an “R&D tax credit claim”) after the end of the claim notification period unless—
a
the company has made an R&D claim during the period of three years ending with the last day of the claim notification period,
b
the company makes a claim notification in respect of the R&D tax credit claim within the claim notification period, or
c
the accounting period in respect of which the R&D tax credit claim is made falls within the same period of account as another accounting period in respect of which the company has made an R&D claim or a claim notification.
2
For the purposes of
subsection (1)
(a)
ignore any R&D claim for an accounting period beginning before 1 April 2023 that is included in the company’s company tax return only by virtue of an amendment made on or after that date (see paragraph 83B(2) of Schedule 18 to FA 1998).

Meaning of “Chapter 2 surrenderable loss”
1055
1
For the purposes of this Chapter a company has a “Chapter 2 surrenderable loss” if in an accounting period—
a
it obtains an additional deduction under section 1044 in calculating the profits of a trade and it makes a trading loss in that period in the trade, or
b
it is treated as making a trading loss under section 1045.
2
If relief is obtained under section 1044 the amount of the Chapter 2 surrenderable loss is—
a
so much of the trading loss as is unrelieved, or
b
if less, 186% of the qualifying Chapter 2 expenditure in respect of which the relief was obtained.
3
If relief is obtained under section 1045 the amount of the Chapter 2 surrenderable loss is so much of the trading loss as is unrelieved.

Amount of trading loss which is “unrelieved”
1056
1
This section applies for the purposes of section 1055.
2
The amount of a trading loss that is “unrelieved” is the amount of the loss reduced by—
a
any relief that was or could have been obtained by the company making a claim under section 37(3)(a) of CTA 2010 to deduct the loss from total profits of the same accounting period,
b
any other relief obtained by the company in respect of the loss, including relief under section 37(3)(b) or 42 of CTA 2010 (losses deducted from profits of an earlier accounting period), and
c
any loss surrendered under Part 5 or Part 5A of CTA 2010 (surrender of relief to group or consortium members).
3
No account is to be taken for this purpose of any losses—
a
brought forward from an earlier accounting period under section 45, 45A or 45B of CTA 2010, or
b
carried back from a later accounting period under section 37(3)(b) or 42 of that Act.

Tax credit only available where company is going concern
1057. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount of tax credit

Amount of tax credit
1058
1
The amount of the R&D tax credit to which a company is entitled for an accounting period is the lesser of—
a
14.5% of the amount of the Chapter 2 surrenderable loss for the period, ... and
aa
the amount of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period (see section
1112B
).
b. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
The Treasury may by regulations—
a
replace the percentage for the time being specified in subsection (1)(a) with a different percentage;
b. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
c. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Relevant expenditure on workers
1058A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total amount of company's PAYE and NIC liabilities
1058B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Avoiding double counting of PAYE and NIC liabilities
1058C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exceptions to tax credit cap
1058D. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total amount of company's PAYE and NIC liabilities
1059. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplementary

Use of credit to pay corporation tax
1060
1
This section applies if an R&D tax credit for an accounting period is payable to a company under this Chapter.
2
The amount payable in respect of—
a
the R&D tax credit, or
b
interest on the credit payable under section 826 of ICTA,
may be applied in discharging any liability of the company to pay corporation tax.
3
So far as the amount is so applied, the duty of the officer of Revenue and Customs to pay the credit under section 1054(4) is discharged.
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax credit payment not income of company
1061
A payment in respect of an R&D tax credit under this Chapter is not income of the company for any tax purposes.

Restriction on losses carried forward where tax credit claimed
1062
1
This section applies if a company claims an R&D tax credit to which it is entitled for an accounting period.
2
For the purposes of sections 45, 45A and 45B of CTA 2010 (relief of trading losses against future ... profits) the company's trading loss for the period is treated as reduced by the amount of the surrendered loss for the period.
3
The “amount of the surrendered loss” for the period means the amount of the Chapter 2 surrenderable loss in respect of which the company claims an R&D tax credit for the period.

Insurance company to be treated as large company
1062A
An insurance company that carries on life assurance business in an accounting period is not to be treated for the purposes of this Chapter as a small or medium-sized enterprise in relation to that period.
Chapter 3

Relief for SMEs: R&D sub-contracted to SME

Relief

Additional deduction in calculating profits of trade
1063. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Threshold

R&D threshold
1064. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying expenditure

Qualifying Chapter 3 expenditure
1065. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Expenditure on sub-contracted R&D undertaken in-house
1066. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Expenditure on sub-contracted R&D not undertaken in-house
1067. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter 4

Relief for SMEs: subsidised and capped expenditure on R&D

Relief

Additional deduction in calculating profits of trade
1068. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Threshold

R&D threshold
1069. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying expenditure

Qualifying Chapter 4 expenditure
1070. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subsidised qualifying expenditure on in-house direct R&D
1071. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subsidised qualifying expenditure on contracted out R&D
1072. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Capped R&D expenditure
1073. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter 5

Relief for large companies

Relief

Additional deduction in calculating profits of trade
1074. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Threshold

R&D threshold
1075. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying expenditure

Qualifying Chapter 5 expenditure
1076. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying expenditure on in-house direct R&D
1077. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying expenditure on contracted out R&D
1078. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Qualifying expenditure on contributions to independent R&D
1079. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Insurance companies

Entitlement to relief: I minus E basis
1080. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter 6

Chapters 2 to 5: further provision
.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter 8

Restrictions on relief under this Part

Introductory

Overview of Chapter
1112A
1
This Chapter limits the entitlements given by Chapters
1A
and 2.
2
Sections
1112B
to
1112E
provide for the amount of R&D expenditure credit or R&D tax credit payable to a company to be capped by reference to certain liabilities of the company in connection with PAYE and national insurance, except in certain cases.
3
Sections
1112F
and
1112G
provide that payment of an R&D expenditure credit, and relief under Chapter 2, are available only to companies that are going concerns.
4
Section
1112H
provides that an R&D expenditure credit or R&D tax credit does not have to be paid if a tax enquiry into the company is open or the company has outstanding PAYE or national insurance liabilities.
5
Section
1112I
provides for transactions aimed at obtaining or increasing an entitlement under Chapter
1A
or 2 not to succeed in doing so.
6
Section 1112J contains provision about the amount of relief to which certain Northern Ireland companies are entitled under Chapter 2.

PAYE and NIC liabilities

Cap by reference to PAYE and NIC liabilities
1112B
1
This section determines, for the purposes of sections
1042I
and 1058(1), the amount of the cap by reference to a company’s PAYE and NIC liabilities for an accounting period.
But see section
1112E
(which provides for there to be no cap in certain cases).
2
The amount of the cap is the sum of—
a
£20,000, and
b
the amount produced by multiplying by three (“the multiplier”) the amount of the company’s relevant PAYE and NIC liabilities for payment periods ending in the accounting period (see section
1112C
).
3
If the accounting period is less than 12 months, the amount specified in subsection
(2)
(a)
is to be proportionately reduced.
4
If the company claims relief under both Chapters
1A
and 2 for the period, the amount of the cap for the purposes of section
1042I
is to be reduced by the amount of any R&D tax credit obtained by the company under Chapter 2.
5
The Treasury may by regulations—
a
replace the amount for the time being specified in subsection
(2)
(a)
with a different amount;
b
replace the multiplier for the time being specified in subsection
(2)
(b)
with a different multiplier.

Calculation of relevant PAYE and NIC liabilities
1112C
1
This section determines the amount of a company’s relevant PAYE and NIC liabilities for a payment period for the purposes of section
1112B
.
2
The amount is to be calculated as follows.
- Step 1
Take the total amount of the company’s PAYE and NIC liabilities for the payment period (see section
1112D
).
- Step 2
Add any amount produced by the application of subsection
(4)
or
(6)
to the company as company A.
- Step 3
Deduct any amount produced by the application of subsection
(4)
or
(6)
to the company as company B.
3
An amount is produced by subsection
(4)
where—
a
two companies (“
company A
” and “
company B
”) are connected,
b
company A incurs expenditure in the payment period on externally provided workers (see sections 1127 and 1128), and
c
company B incurs staffing costs in the payment period in providing any of those workers for company A.
4
The amount produced is the sum of the amounts given, in relation to each worker in respect of whom subsection
(3)
(c)
is satisfied, by—
X × Y/Z
where—
- X is the amount of expenditure that—
  1. has been incurred on staffing costs by company B in providing the worker for company A, and
  2. forms part of the total amount of company B’s PAYE and NIC liabilities for the payment period (see section
1112D
),
- Y is the amount of company A’s expenditure on the externally provided worker that has been taken into account in calculating the amount of company A’s qualifying expenditure for the payment period, and
- Z is the total amount of company A’s qualifying expenditure on the externally provided worker (see section 1127) for the payment period.
5
Subsection
(6)
produces an amount where—
a
two companies (“
company A
” and “
company B
”) are connected,
b
company A incurs qualifying contractor expenditure in the payment period, and
c
company B incurs staffing costs in the payment period in undertaking on behalf of company A any of the research and development to which that expenditure is attributable.
6
That amount is such amount of those staffing costs as forms part of the total amount of company B’s PAYE and NIC liabilities for the payment period (see section
1112D
).
7
In this section as it applies for the purposes of section
1042I
—
- “
qualifying expenditure
” (except in the expression “
qualifying expenditure on the externally provided worker
”) means expenditure that is qualifying Chapter
1A
expenditure by virtue of section
1042D
,
1042E
or
1042F
;
- “
qualifying contractor expenditure
” means expenditure that is qualifying Chapter
1A
expenditure by virtue of—
  1. section
1042E
, or
  2. section
1042F
as it applies by reference to section
1042E
.
8
In this section as it applies for the purposes of section 1058(1)—
- “
qualifying expenditure
” (except in the expression “
qualifying expenditure on the externally provided worker
”) means qualifying Chapter 2 expenditure (see section 1051);
- “
qualifying contractor expenditure
” means qualifying expenditure that is qualifying Chapter 2 expenditure by virtue of—
  1. section
1053
, or
  2. section
1053A
as it applies by reference to section
1053
.

Total PAYE and NIC liabilities
1112D
1
For the purposes of section
1112C
, the total amount of a company’s PAYE and NIC liabilities for a payment period is the sum of amount A and amount B.
2
Amount A is the total amount of income tax for which the company is required to account to an officer of Revenue and Customs under PAYE regulations for the period.
3
In calculating amount A, any deduction the company is authorised to make in respect of child tax credit or working tax credit is to be disregarded.
4
Amount B is the total amount of Class 1 national insurance contributions for which the company is required to account to an officer of Revenue and Customs for the accounting period.
5
In calculating amount B, any deduction the company is authorised to make in respect of any of the following is to be disregarded—
a
statutory maternity pay,
b
statutory adoption pay,
c
statutory paternity pay,
d
statutory shared parental pay,
e
statutory parental bereavement pay;
f
child tax credit, or
g
working tax credit.
6
Subsection
(7)
applies if—
a
in determining under section
1112C
the amount of a company’s relevant PAYE and NIC liabilities for a payment period, it is necessary to determine the total amount of another company’s PAYE and NIC liabilities for that period, and
b
that period falls within, but is shorter than, a payment period of that other company.
7
The amount produced by subsection
(1)
in its application to that other company is to be proportionately reduced.

Exception for companies creating or managing intellectual property
1112E
1
There is no cap by reference to a company’s PAYE and NIC liabilities for an accounting period if the company meets conditions A and B.
2
A company meets condition A for an accounting period if, during the period, the company is engaged in—
a
taking, or preparing to take, steps in order that relevant intellectual property will be created by it,
b
creating relevant intellectual property, or
c
performing a significant amount of management activity in relation to relevant intellectual property it holds.
3
For the purposes of subsection
(2)
—
a
a company is only engaged in an activity mentioned in paragraph
(a)
,
(b)
or
(c)
of subsection
(2)
if the activity is wholly or mainly undertaken by employees of the company;
b
intellectual property is “relevant” intellectual property in relation to a company if the whole or the greater part (in terms of value) of it is created by the company;
c
intellectual property is created by a company if it is created in circumstances in which the right to exploit it vests in the company (whether alone or jointly with others).
4
For the purposes of this section—
- “
intellectual property
” means—
  1. any patent, trade mark, registered design, copyright, design right or plant breeder’s right,
  2. any rights under the law of a country or territory outside the United Kingdom which correspond or are similar to those falling within paragraph (a), or
  3. any information or technique not protected by a right within paragraph (a) or (b) but having industrial, commercial or other economic value;
- “
management activity
”, in relation to intellectual property, means formulating plans and making decisions in relation to the development or exploitation of the intellectual property.
5
A company meets condition B for an accounting period if the amount (if any) given by subsection
(6)
does not exceed 15% of the company’s qualifying expenditure for the period.
6
The amount given by this subsection is the sum of the following incurred by the company in the period—
a
qualifying expenditure on externally provided workers (see section 1127), where the company, the staff provider and (if different) the staff controller (or staff controllers)—
i
are all connected, or
ii
have jointly elected (under section 1130) that section 1129 is to apply to them as if they were all connected;
b
qualifying contractor expenditure, where the company and the contractor—
i
are connected, or
ii
have jointly elected (under section 1135) that section 1134 is to apply to them as if they were connected.
7
In subsection
(6)
(b)
, “qualifying contractor expenditure” has whichever of the meanings given by
1112C
(7)
corresponds to the purpose for which this section is being applied.
8
The Treasury may by regulations replace the percentage for the time being specified in subsection
(5)
with a different percentage.

Going concerns

Restriction of credit and relief to companies that are going concerns
1112F
1
Subsection
(2)
applies if a company makes a claim under section
1042C
(claims for R&D expenditure credit) at a time when it is not a going concern.
2
No amount is to be paid to the company at step 7 in section
1042I
as a result of the claim.
3
Subsection
(2)
ceases to apply (and the company accordingly becomes entitled to be paid) if the company becomes a going concern on or before the last day on which it would be entitled to amend the claim in accordance with paragraph 83E of Schedule 18 to FA 1998.
4
A company may not make—
a
a claim under section 1044 (R&D relief by way of additional deduction),
b
an election under section 1045 (R&D relief by way of deemed trading loss), or
c
a claim under section 1054 (R&D tax credit),
at a time when it is not a going concern.
5
If a company ceases to be a going concern after making a claim under section 1054, it is treated as if it had not made the claim (and accordingly there is treated as having been no payment of R&D tax credit to carry interest under section 826 of ICTA).
6
Subsection
(5)
does not apply so far as the claim relates to an amount that was paid or applied before the company ceased to be a going concern.

Meaning of “going concern”
1112G
1
For the purposes of section
1112F
, a company is a going concern if—
a
its latest published accounts were prepared on a going concern basis, and
b
nothing in those accounts indicates that they were prepared on that basis only because of an entitlement or expected entitlement to a credit or relief under this Part.
2
But a company is not a going concern if it is in administration or liquidation.
3
For the purposes of this section, a company is in administration if—
a
it is in administration under Part 2 of the Insolvency Act 1986 or Part 3 of the Insolvency (Northern Ireland) Order 1989 (
S.I. 1989/2405 (N.I. 19))
, or
b
a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.
4
For the purposes of this section, a company is in liquidation if—
a
it is in liquidation within the meaning of section 247 of that Act or Article 6 of that Order, or
b
a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.
5
If—
a
a company transfers its trade and research and development to another company that is a member of the same group, and
b
only by reason of that transfer, the company’s accounts for the period of account in which the transfer took place are not prepared on a going concern basis,
the accounts are to be treated for the purposes of this section as if they were prepared on a going concern basis.
6
Section 436(2) of the Companies Act 2006 (meaning of “publication” of documents) has effect for the purposes of this section.

Outstanding tax matters

No credit payable if certain tax matters outstanding
1112H
1
This section applies in relation to an amount that a company would, but for this section, be entitled to be paid—
a
at step 7 in section
1042I
(payment of R&D expenditure credit not applied for other purposes), or
b
under section 1054 (payment of R&D tax credit).
2
If the company’s tax return for the accounting period in question is enquired into by an officer of Revenue or Customs—
a
the amount does not have to be paid to the company, but
b
an officer of Revenue and Customs may make a payment on a provisional basis of such amount as the officer thinks fit.
3
If the company has outstanding PAYE or NIC liabilities for the accounting period in question, the amount does not have to be paid to the company.
4
For the purposes of subsection
(3)
, a company has outstanding PAYE or NIC liabilities for an accounting period if it has not paid to an officer of Revenue and Customs any amount that it is required to pay—
a
under PAYE regulations, or
b
in respect of Class 1 national insurance contributions,
for payment periods ending in the accounting period.

Artificially inflated claims

Transactions aimed at obtaining credit or relief to be disregarded
1112I
1
To the extent that a transaction is attributable to arrangements entered into for a disqualifying purpose, it is to be disregarded in ascertaining a company’s entitlement to relief under this Part.
2
Arrangements are entered into for a disqualifying purpose if their main purpose, or one of their main purposes, is to enable a company to obtain relief under this Part—
a
to which it would not otherwise be entitled, or
b
of greater amount than that to which it would otherwise be entitled.

Northern Ireland companies

Chapter 2 relief for Northern Ireland companies
1112J
1
This section applies for the purpose of determining the entitlement of a Northern Ireland company to relief under Chapter 2.
2
A Northern Ireland company is entitled to additional relief under Chapter 2 only to the extent that the additional relief would be exempted from notification under Article 108(3) of the TFEU by a de minimis aid regulation listed in paragraph 3.4 of Annex 5 to the Windsor Framework (as amended or replaced from time to time).
3
In subsection (2), “
additional relief
” means the difference between the value of the relief claimed by the company under Chapter 2 in respect of expenditure and the value of the relief that could have been obtained by the company under Chapter 1A in respect of that expenditure.
4
This section does not apply to a company in relation to an accounting period if the company—
a
has not, at any time during the accounting period, carried on a trade involving—
i
trade in goods, or
ii
the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity, and
b
has notified an officer of Revenue and Customs in writing that it wishes to rely on the exception in this subsection.
5
In this section—
- “
Northern Ireland company
” means a company whose registered office is in Northern Ireland;
- “
TFEU
” means the Treaty on the Functioning of the European Union as it has effect by virtue of Article 10 of the Windsor Framework;
- “
Windsor Framework
” means the part of the EU withdrawal agreement known as the Windsor Framework by virtue of Joint Declaration No. 1/2023 of 24th March 2023 made by the European Union and the United Kingdom in the Joint Committee established by the EU withdrawal agreement.
Chapter 9

Supplementary

SMEs and large companies

“Small or medium-sized enterprise”
1119
1
In this Part “small or medium-sized enterprise” means a micro, small or medium-sized enterprise as defined in Commission Recommendation (EC) No 2003/361, but subject to the qualifications in section 1120 (and see sections 1120A and 1120B).
2
The Treasury may by order amend this section or
sections 1120 to
1120B
to substitute a different definition of “small or medium-sized enterprise” for the purposes of this Part.
3
This section is subject to section 1081 (insurance companies to be treated as large companies for purposes of Chapter 2).

Qualifications to section 1119
1120
1
This section contains qualifications to the definition of small or medium-sized enterprise in section 1119.
2
The qualifications are—
Qualification 1
In Article 2(1) of the Annex, the references to 250 persons, 50 million euros and 43 million euros are to be read as references to 500 persons, 100 million euros and 86 millions euros (respectively).
Qualification 2
If each of conditions A to D is met, Article 4(2) of the Annex is to be disregarded in determining whether a company (“C”) is within the definition of small or medium-sized enterprise in section 1119 for an accounting period in which C exceeds the employee limit or the financial limits.
3
Condition A is that C is a micro, small or medium-sized enterprise as defined in the Recommendation (or would be if the Annex were read as set out in qualification 1), disregarding any partner enterprise or linked enterprise.
4
Condition B is that a partner enterprise or linked enterprise to which C is related exceeds the employee limit or both of the financial limits, disregarding the number of employees, the annual turnover and the annual balance sheet totals of C.
5
Condition C is that the number of employees, annual turnover or annual balance sheet total (as the case may be) of the partner enterprise or linked enterprise to which C is related has been taken into account in determining whether C exceeded the employee limit or the financial limits.
6
Condition D is that, taken alone, C satisfies the employee limit and at least one of the financial limits.
6A
This section is subject to
sections 1120A
and
1120B
.
7
In this section and in sections 1120A and 1120B —
a
references to the Recommendation are to the Commission Recommendation mentioned in section 1119(1),
b
references to the Annex are to the Annex to the Recommendation,
c
references to the employee limit are to the limit on the number of employees contained in Article 2(1) of the Annex (read as set out in qualification 1), and
d
references to the financial limits are to the limits on the annual turnover and balance sheet totals contained in Article 2(1) of the Annex (read as set out in qualification 1).

Enterprise treated as an SME where related enterprise becomes large
1120A
1
This section applies, in relation to an accounting period, where the following conditions are met.
2
The first condition is that, for the duration of the accounting period, an enterprise (“
E
”) is related to a partner enterprise or linked enterprise (“
F
”).
3
The second condition is that, at the start of the accounting period, both E and F are small or medium-sized enterprises.
4
The third condition is that, at the end of the accounting period, E is not a small or medium-sized enterprise by reason only that F has, during the accounting period, exceeded the employee limit or either of the financial limits.
5
Both E and F are to be treated as if they were small or medium-sized enterprises for the accounting period.

Enterprise treated as an SME where acquired by an SME
1120B
1
This section applies, in relation to an accounting period, where the following conditions are met.
2
The first condition is that, at the start of the accounting period, an enterprise (“
E
”) was not a small or medium-sized enterprise by reason only that a partner enterprise or linked enterprise to which E was related exceeded the employee limit or either of the financial limits.
3
The second condition is that, during the accounting period, control of E was acquired by a company that, at the time of the acquisition, was a small or medium-sized enterprise.
4
E is to be treated as if it were a small or medium-sized enterprise for the accounting period.
5
In
subsection (3)
“
control
” has the same meaning as in section 1124 of CTA 2010.

“Larger SME”
1121
References in this Part to a “larger SME” are to a company which is a small or medium-sized enterprise by virtue of qualification 1 in section 1120.

“Large company”
1122
In this Part “large company” means a company that is not a small or medium-sized enterprise.

Staffing costs

“Staffing costs”
1123
1
For the purposes of this Part the staffing costs of a company are amounts to which subsection (2), (3), (4), (5) or (7) applies.
2
This subsection applies to an amount paid by the company to a director or an employee of the company which—
a
is earnings consisting of money, and
b
is paid because of the director's or employee's employment.
3
This subsection applies to an amount paid by the company to a director or an employee of the company, other than an amount paid in respect of benefits in kind, if—
a
the amount is paid in respect of expenses paid by the director or employee, and
b
the amount is paid because of the director's or employee's employment.
4
This subsection applies to secondary Class 1 national insurance contributions paid by the company.
5
This subsection applies to compulsory contributions paid by the company in respect of benefits for directors or employees of the company under the social security legislation of an EEA State ... or Switzerland.
6
In subsection (5) “social security legislation” means legislation relating to any of the branches of social security listed in Article 3(1) of Regulation (EC) No. 883/2004 of the European Parliament and of the Council on the co-ordination of social security systems as it had effect in the UK immediately before IP completion day.
7
This subsection applies to contributions paid by the company to a pension fund operated for the benefit of directors or employees of the company.
8
In subsection (7) “pension fund” means a scheme, fund or other arrangement established and maintained (whether in the United Kingdom or elsewhere) for the purpose of providing pension benefits.
For this purpose “scheme” includes a deed, agreement or series of agreements.
9
In subsection (8) “pension benefits” means pensions, retirement annuities, allowances, lump sums, gratuities or other superannuation benefits (with or without subsidiary benefits).

Staffing costs: attributable expenditure
1124
1
This section applies for the purposes of this Part to identify when staffing costs are attributable to relevant research and development.
2
The costs which are so attributable are those paid to, or in respect of, directors or employees who are directly and actively engaged in relevant research and development.
3
Subsection (4) applies if a director or employee is partly engaged directly and actively in relevant research and development.
4
The appropriate proportion of the staffing costs relating to the director or employee is treated as attributable to relevant research and development.
5
Subsection (6) applies if persons provide services, such as secretarial or administrative services, in support of activities carried on by others.
6
Those persons are not, as a result of providing those services, to be treated as themselves directly and actively engaged in those activities.

Software , data licences, cloud computing services or consumable items

“Software , data licences, cloud computing services or consumable items”
1125
1
For the purposes of this Part expenditure on software , data licences, cloud computing services or consumable items means an amount paid by the company in respect of—
a
computer software, ...
aa
data licences,
ab
cloud computing services, or
b
consumable or transformable materials.
1A
For the purposes of subsection (1)
(aa)
a data licence is a licence to access and use a collection of digital data.
1B
For the purposes of subsection (1)
(ab)
cloud computing services include the provision of access to, and maintenance of, remote—
a
data storage and hardware facilities;
b
operating systems and software platforms.
2
For the purposes of subsection (1)(b) consumable or transformable materials include water, fuel and power.

Software , data licences, cloud computing services or consumable items: attributable expenditure
1126
1
This section applies for the purposes of this Part to identify when expenditure on software , data licences, cloud computing services or consumable items is attributable to relevant research and development.
2
Expenditure on software , data licences, cloud computing services or consumable items is so attributable if the software , data licences, cloud computing services or consumable items are employed directly in relevant research and development.
3
Subsection (4) applies if software , data licences, cloud computing services or consumable items are partly employed directly in relevant research and development.
4
The appropriate proportion of the expenditure on the software , data licences, cloud computing services or consumable items is treated as attributable to relevant research and development.
5
Subsection (6) applies if software , data licences, cloud computing services or consumable items are employed in the provision of services, such as secretarial or administrative services, in support of other activities.
6
The software , data licences, cloud computing services or consumable items are not, as a result of their employment in the provision of those services, to be treated as themselves directly employed in those activities.
7
This section is subject to sections 1126A and 1126B.

Attributable expenditure: special rules for data and cloud computing
1126ZA
1
Expenditure on data licences or cloud computing services is not to be treated as attributable to relevant research and development if, in connection with the grant of a licence or the provision of a service, a relevant person obtains—
a
a right to sell data in respect of which the licence is granted or the service is provided (as the case may be);
b
a right to publish, share or otherwise communicate data in respect of which the licence is granted or the service is provided (as the case may be) to a third party, other than for the purposes of communications reasonably necessary for, or incidental to, the purposes of the relevant research and development.
2
Expenditure on data licences or cloud computing services is not to be treated as attributable to relevant research and development so far as it is attributable to a qualifying indirect activity.
3
In this section—
- “
qualifying indirect activity
” means an activity mentioned in paragraph 31 of the Guidelines on the Meaning of Research and Development for Tax Purposes issued on 7 March 2023 and as amended from time to time;
- “
relevant person
” has the meaning given in section 1126A(10).

Attributable expenditure: special rules for consumable items
1126A
1
Expenditure on consumable items is not to be treated as attributable to relevant research and development if—
a
the relevant research and development relates to an item that is produced in the course of the research and development,
b
the consumable items form part of the item produced,
c
the item produced is transferred by a relevant person for consideration in money or money's worth, and
d
the transfer is made in the ordinary course of the relevant person's business.
2
Expenditure on consumable items is not to be treated as attributable to relevant research and development if—
a
the relevant research and development relates to a process of producing an item,
b
the consumable items form part of an item produced in the course of that research and development,
c
the item produced is transferred by a relevant person for consideration in money or money's worth, and
d
the transfer is made in the ordinary course of the relevant person's business.
3
If—
a
the item produced as described in subsection (1) or (2) may be divided, and
b
only a proportion (“the appropriate proportion”) of that item is transferred by a relevant person as described in subsection (1)(c) and (d) or (2)(c) and (d),
the appropriate proportion of the expenditure on the consumable items is not to be treated as attributable to the relevant research and development.
4
If—
a
a number of items are produced in the course of the relevant research and development described in subsection (2), and
b
only a proportion (“the appropriate proportion”) of those items is transferred by a relevant person as described in subsection (2)(c) and (d),
the appropriate proportion of the expenditure on the consumable items is not to be treated as attributable to the relevant research and development.
5
A reference in this section to producing an item includes a reference to preparing an item for transfer.
6
For the purposes of this section a consumable item forms part of an item produced if—
a
it is incorporated into the item produced, or
b
it is turned into, or it and other materials are turned into, the item produced or a part of the item produced.
7
A reference in this section to the transfer of an item is a reference to—
a
the transfer of ownership of an item to another person (whether by sale or otherwise), or
b
the transfer of possession of an item to another person (whether by letting on hire or otherwise),
and a reference to the transfer of an item includes, where the item is incorporated into another item, the transfer of that other item.
8
For the purposes of this section the provision of information obtained in testing an item is not to be regarded as consideration for the transfer of that item.
9
For the purposes of this section a transfer of an item produced in the course of research and development is not to be regarded as a transfer in the ordinary course of business if the item being transferred is waste.
10
In this section—
- “
item
” includes any substance;
- “
relevant person
”, in relation to relevant research and development, means—
  1. the company that incurs the cost of the research and development, whether it is undertaken by itself or contracted out,
  2. the company to which the research and development is contracted out, whether it is undertaken by itself or contracted out,
  3. the person (other than a company) who contracts out the research and development to a company and incurs the cost of the research and development,
  4. the person (other than a company) to whom the research and development is contracted out, or
  5. a person who is connected to a company or person described in paragraph (a), (b), (c) or (d).

Attributable expenditure: further provision
1126B
1
The Treasury may by regulations make provision for the purpose of identifying when expenditure on
data licences, cloud computing services or
consumable items is attributable to relevant research and development, including provision modifying the effect of section 1126
, 1126ZA
or 1126A.
2
Regulations under this section may include provision about—
a
the circumstances in which expenditure on
data licences, cloud computing services or
consumable items employed directly in relevant research and development is, or is not, to be treated as attributable to that relevant research and development;
b
the circumstances in which
data licences, cloud computing services or
consumable items are, or are not, to be treated as employed directly in relevant research and development.
3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Regulations under this section may amend—
a
section 1126;
aa
section 1126ZA;
b
section 1126A;
c
any other provision of this Act, if that is appropriate in consequence of provision made under paragraph (a) or (b).
5
Regulations under this section may make provision that has effect in relation to expenditure incurred before the making of the regulations, provided that it does not increase any person's liability to tax.

Qualifying expenditure on externally provided workers

“Qualifying expenditure on externally provided workers”
1127
1
For the purposes of this Part a company incurs expenditure on externally provided workers if—
a
it makes a payment (a “staff provision payment”) to another person (the “staff provider”), and
b
the payment is in respect of the supply to the company, by or through the staff provider, of the services of any externally provided workers.
2
The company's qualifying expenditure on externally provided workers is determined in accordance with section 1129 or 1131.
3
In sections 1128 to 1131 references to “staff provider” and “staff provision payment” are to be read in accordance with subsection (1).

“Externally provided worker”
1128
1
For the purposes of this Part a person is an “externally provided worker” in relation to a company if each of conditions A to G is met.
2
Condition A is that the worker is an individual.
3
Condition B is that the worker is not a director or employee of the company.
4
Condition C is that the worker personally provides, or is under an obligation personally to provide, services to the company.
5
Condition D is that the worker is subject to (or to the right of) supervision, direction or control by the company as to the manner in which those services are provided.
6
Condition E is that the worker's services are supplied to the company through a staff provider (whether or not the worker is a director or employee of the staff provider or any other person).
7
Condition F is that the worker provides, or is under an obligation to provide, those services personally to the company under the terms of a contract between the worker and a person other than the company (the “staff controller”).
8
Condition G is that the provision of those services does not constitute the carrying on of activities contracted out by the company.
9
In sections 1129 to
1132A
references to “staff controller” are to be read in accordance with subsection (7).

Qualifying expenditure on externally provided workers: connected persons
1129
1
This section applies if—
a
a company makes a staff provision payment,
b
the company, the staff provider and (if different) the staff controller (or staff controllers) are all connected, and
c
in accordance with generally accepted accounting practice—
i
the whole of the staff provision payment has been brought into account in determining the staff provider's profit or loss for a relevant period, and
ii
all of the relevant expenditure of each staff controller has been brought into account in determining the staff controller's profit or loss for a relevant period.
2
The company's qualifying expenditure on externally provided workers is—
a
the entire staff provision payment, or
b
if less, an amount equal to the aggregate of the relevant expenditure of each staff controller.
3
“Relevant expenditure”, in relation to a staff controller, means expenditure that—
a
is incurred by the staff controller in providing for the company the externally provided workers to whom the staff provision payment relates,
b
is not of a capital nature, ...
c
is incurred on staffing costs or agency workers' remuneration, and
d
is attributable to qualifying earnings of externally provided workers.
4
“Relevant period”, in relation to a person, means a period—
a
for which accounts are drawn up for the person, and
b
that ends not more than 12 months after the end of the company's period of account in which the staff provision payment is, in accordance with generally accepted accounting practice, brought into account in determining the company's profit or loss.
4A
In subsection (2) the reference to the staff provision payment is to that payment before any deduction is made from the payment under—
a
section 61S of ITEPA 2003,
b
regulation 19 of the Social Security Contributions (Intermediaries) Regulations 2000, or
c
regulation 19 of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000.
5
In section 1123 (meaning of “staffing costs”), which applies for the purpose of determining whether the expenditure of a staff controller meets the requirements of subsection (3)(c), references to a company are to be read as references to a staff controller.
6
“Agency workers' remuneration”, in the case of any person who is an externally provided worker in relation to the company, means remuneration that—
a
is receivable by the worker under or in consequence of the contract mentioned in section 1128(7), but
b
does not constitute employment income of the worker apart from Chapter 7 of Part 2 of ITEPA 2003 (application of provisions to agency workers).
7
Any apportionment of expenditure of the company or a staff controller necessary for the purposes of this section is to be made on a just and reasonable basis.

Election for connected persons treatment
1130
1
If—
a
a company makes a staff provision payment, and
b
the company, the staff provider and (if different) the staff controller (or staff controllers) are not all connected,
they may jointly elect that section 1129 is to apply to them as if they were all connected.
2
Any such election has effect in relation to all staff provision payments paid under the same contract or other arrangement.
3
The election must be made by notice in writing to an officer of Revenue and Customs.
4
The notice must be given before the end of the period of two years beginning immediately after the end of the company's accounting period in which the contract or other arrangement is entered into.
5
An election under this section is irrevocable.

Qualifying expenditure on externally provided workers: other cases
1131
1
This section applies if—
a
a company makes a staff provision payment,
b
the company, the staff provider and (if different) the staff controller (or staff controllers) are not all connected, and
c
no election is made under section 1130.
2
The company's qualifying expenditure on externally provided workers is 65% of so much of the staff provision payment as is attributable to qualifying earnings of externally provided workers.
3
In subsection (2) the reference to the staff provision payment is to that payment before any deduction is made from the payment under—
a
section 61S of ITEPA 2003,
b
regulation 19 of the Social Security Contributions (Intermediaries) Regulations 2000, or
c
regulation 19 of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000.
4
Any apportionment of expenditure of the company necessary for the purposes of this section is to be made on a just and reasonable basis.

Sections 1129 and 1131: secondary Class 1 NICS paid by company
1131A
1
This section applies if—
a
a company makes a staff provision payment,
b
the company is treated as making a payment of deemed direct earnings the amount of which is calculated by reference to the amount of the staff provision payment, and
c
the company pays a secondary Class 1 national insurance contribution in respect of the payment of deemed direct earnings.
2
In determining the company's qualifying expenditure on externally provided workers in accordance with section 1129(2) or section 1131(2) the amount of the staff payment provision is to be treated as increased by the amount of the contribution.
3
In determining the company's qualifying expenditure on externally provided workers in accordance with section 1129(2) the aggregate of the relevant expenditure of each staff controller is to be treated as increased by the amount of the contribution.
4
But subsection (2) does not apply to the extent that the expenditure incurred by the company in paying the contribution is met directly or indirectly by a staff controller.
5
“
A payment of deemed direct earning
” means a payment the company is treated as making by reason of regulation 14 of the Social Security Contributions (Intermediaries) Regulations 2000 or regulation 14 of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000.

External workers: attributable expenditure
1132
1
This section applies for the purposes of this Part to identify when qualifying expenditure on externally provided workers is attributable to relevant research and development.
2
Qualifying expenditure on externally provided workers is so attributable if the workers are directly and actively engaged in relevant research and development.
3
Subsection (4) applies if an externally provided worker is partly engaged directly and actively in relevant research and development.
4
The appropriate proportion of the qualifying expenditure relating to the worker is treated as attributable to relevant research and development.
5
Subsection (6) applies if persons provide services (such as secretarial or administrative services) in support of activities carried on by others.
6
Those persons are not, as a result of providing those services, to be treated as themselves directly and actively engaged in those activities.

“Qualifying earnings”
1132A
1
This section determines what are “
qualifying earnings
” in relation to an externally provided worker for the purposes of this Part.
2
The worker’s earnings are qualifying earnings if either—
a
the staff controller, or
b
the company in relation to which the worker is an externally provided worker,
is, in respect of any part of those earnings, required to account to an officer of Revenue and Customs both for income tax under PAYE regulations and for Class 1 national insurance contributions.
3
If subsection
(2)
does not apply, the worker’s earnings are qualifying earnings if and to the extent that they are attributable to relevant research and development that is undertaken outside the United Kingdom and to which section
1138A
applies.
4
In this section, “
the worker’s earnings
” means the worker’s earnings under the contract mentioned in section 1128(7).

Contracting out

Contracted out research and development
1133
1
This section applies for the purposes of this Part.
2
A person “contracts out” research and development if—
a
the person enters into a contract under which activities are to be undertaken for it (whether by another party to the contract or by a sub-contractor),
b
the activities undertaken in order to meet the obligations owed to the person under the contract include research and development, and
c
it is reasonable to assume, having regard to the terms of the contract and any surrounding circumstances, that the person intended or contemplated when entering into the contract that research and development of that sort would be undertaken in order to meet those obligations.
3
The research and development that is “contracted out” is the research and development referred to in subsection
(2)
(b)
, to the extent that subsection
(2)
(c)
is satisfied in relation to it.
4
Research and development contracted out by a person is contracted out “to”—
a
the party to the contract who undertakes the obligations referred to in subsection
(2)
(b)
, and
b
any sub-contractor who undertakes contractual responsibility for the activities needed to meet those obligations.
5
References to a sub-contractor include any sub-contractor at one or more removes from the contract referred to in subsection
(2)
.
6
A “contractor payment” is a payment made in respect of contracted out research and development to a person to whom it is contracted out.
7
A payment that relates only partly to contracted out research and development is to be apportioned on a just and reasonable basis for the purposes of subsection
(6)
.
8
Sections 1134 to 1136 determine the “qualifying element” of a contractor payment.

Qualifying element of contractor payment: connected persons
1134
1
This section applies if—
a
a company (“
A
”) makes a contractor payment to another person (“
B
”),
b
A and B are connected, and
c
in accordance with generally accepted accounting practice, the whole of the ... payment and all of B’s relevant expenditure have been brought into account in determining B’s profit or loss for a relevant period.
2
The qualifying element of the ... payment is—
a
the entire payment, or
b
if less, an amount equal to B’s relevant expenditure.
3
“Relevant expenditure” of B means expenditure that—
a
is incurred by B in carrying on, on behalf of the company, the activities to which the ... payment relates,
b
is not of a capital nature,
c
is incurred on staffing costs, software , data licences, cloud computing services or consumable items or relevant payments to the subjects of a clinical trial or is qualifying expenditure on externally provided workers, and
e
is incurred in respect of—
i
research and development that is undertaken in the United Kingdom, or
ii
research and development that is undertaken outside the United Kingdom and to which section
1138A
applies.
4
“Relevant period” means a period—
a
for which accounts are drawn up for B, and
b
that ends not more than 12 months after the end of A’s period of account in which the contractor payment is, in accordance with generally accepted accounting practice, brought into account in determining A’s profit or loss.
5
In section 1123 (staffing costs) and sections 1127 to 1131 (qualifying expenditure on externally provided workers) as they apply for the purposes of subsection (3)(c), references to a company are to be read as references to B.
6
Any apportionment of expenditure of A or B necessary for the purposes of this section is to be made on a just and reasonable basis.

Election for connected persons treatment
1135
1
Where a company makes a contractor payment to a person with whom it is not connected, the company and that person may jointly elect that section 1134 is to apply to them as if they were connected.
2
Any such election must be made in relation to all contractor payments paid under the same contract or ....
3
The election must be made by notice in writing to an officer of Revenue and Customs.
4
The notice must be given before the end of the period of two years beginning immediately after the end of the company's accounting period in which the contract ... is entered into.
5
An election under this section is irrevocable.

Qualifying element of contractor payment: other cases
1136
1
This section applies to a contractor payment to which section 1134 does not apply.
2
The qualifying element of the payment is 65% of the relevant portion of the payment.
3
The relevant portion is the portion that is incurred in respect of—
a
research and development that is undertaken in the United Kingdom, or
b
research and development that is undertaken outside the United Kingdom and to which section
1138A
applies.
4
An apportionment of expenditure necessary for the purposes of this section is to be made on a just and reasonable basis.

Miscellaneous

Accounting periods: company not within charge to corporation tax
1137
1
This section applies to a company if—
a
it is not within the charge to corporation tax, and
b
it incurs qualifying Chapter 2 expenditure ... .
2
For the purposes of this Part the company is treated as having the accounting periods it would have if—
a
it carried on a trade consisting of the activities in respect of which the expenditure is incurred, and
b
it had started to carry on that trade when it started to carry on relevant research and development.

“Subsidised expenditure”
1138. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Externally provided workers and contractors: R&D undertaken abroad
1138A
1
This section applies to research and development undertaken outside the United Kingdom if—
a
the research and development is undertaken in the circumstances described in subsection
(2)
, or
b
the research and development is undertaken, or contracted out, by a company whose registered office is in Northern Ireland.
2
The circumstances are that there are conditions necessary for the purposes of the research and development—
a
that are not present in the United Kingdom,
b
that are present in the location in which the research and development is undertaken, and
c
that it would be wholly unreasonable for the company to replicate in the United Kingdom.
3
In subsection
(2)
“conditions”—
a
includes—
i
geographical, environmental or social conditions;
ii
legal or regulatory requirements as a result of which the research and development may not be undertaken in the United Kingdom, but
b
does not include conditions so far as relating to—
i
the cost of the research and development;
ii
the availability of workers to carry out the research and development.
4
The Treasury may by regulations make provision specifying things that are not conditions for the purposes of subsection
(2)
.
5
Subsection (1)(b) does not apply in relation to a company in respect of an accounting period if the company—
a
has not, at any time during the accounting period, carried on a trade involving—
i
trade in goods, or
ii
the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity, and
b
has notified an officer of Revenue and Customs in writing that it wishes to rely on the exception in section 1112J(4) (restriction of Chapter 2 relief for Northern Ireland companies).

Exempt foreign permanent establishments
1138B
For the purposes of this Part in its application to an accounting period, a company’s expenditure is “attributable to an exempt foreign permanent establishment” if—
a
an election by the company under section 18A applies to the period, and
b
the expenditure is brought into account in calculating a relevant profits amount or a relevant losses amount for the purposes of that section as it applies in relation to the period.

“Intellectual property”
1139. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Expenditure incurred on payments
1139A
1
References in this Part to expenditure incurred on payments (however expressed) are references to expenditure incurred on payments made before the making of a claim under this Part in relation to that expenditure.

“Relevant payments to the subjects of a clinical trial”
1140
1
For the purposes of this Part “relevant payment”, in relation to a subject of a clinical trial, means a payment made to the subject for participating in the trial.
2
For the purposes of this Part “clinical trial” means an investigation in human subjects undertaken in connection with the development of a health care treatment or procedure.

Groups
1140A
For the purposes of this Part, a company is in the same group as another company if those companies are in the same group for the purposes of Part 5 of CTA 2010.

“Payment period”
1141
In this Part a “payment period” means a period—
a
which ends on the fifth day of a month, and
b
for which the company is liable to account for income tax and national insurance contributions to an officer of Revenue and Customs.

Ineligible companies
1142
1
For the purposes of this Part a company is an “ineligible company” if it is—
a
a charity,
b
an institution of higher education,
c
an association (in the sense that word has in section 469(1)(a) of CTA 2010) which meets conditions A and B in that section (conditions for qualifying as a scientific research association),
d
a health service body within the meaning of section 986 of that Act, or
e
any other body prescribed, or of a description prescribed, by the Treasury, by order, for the purposes of this Part.
2
In subsection (1)(b) “institution of higher education” means—
a
an institution within the higher education sector within the meaning of the Further and Higher Education Act 1992 (c. 13),
b
an institution within the higher education sector within the meaning of Part 2 of the Further and Higher Education (Scotland) Act 1992 (c. 37) or a central institution within the meaning of the Education (Scotland) Act 1980 (c. 44), or
c
a higher education institution within the meaning of Article 30(3) of the Education and Libraries (Northern Ireland) Order 1993 (S.I. 1993/2810 (N.I. 12)).
3
An order under this section is to have effect in relation to the accounting periods or expenditure specified in the order.
4
The order may specify accounting periods beginning, or expenditure incurred, before the time the order is made.
5
Two companies that are in the same group may make a joint election the effect of which is that—
a
in respect of any research and development contracted out by one of those companies to the other, the company contracting it out is to be treated for the purposes of this Part as an ineligible company, and
b
in determining whether activity is research and development for the purposes of this Part, anything done by one of those companies further to a contract with the other is to be treated as if done by the other company, in any case where that results in activity that would not otherwise be research and development being regarded as such.
6
Such an election—
a
must be made by notice in writing to an officer of Revenue and Customs, and
b
has effect until—
i
it is revoked by either company by further such notice, or
ii
the companies are no longer in the same group.

“Claim notification” and “claim notification period”
1142A
1
For the purposes of this Part—
- “
claim notification
” means, in relation to an R&D claim, a notification made by the company to an officer of His Majesty’s Revenue and Customs in accordance with regulations under
subsection (2)
;
- “
claim notification period
” means, in relation to an R&D claim, the period—
  1. beginning with the first day of the period of account which is the same as the accounting period in respect of which the claim is made, or within which that accounting period falls, and
  2. ending with the last day of the period of six months beginning with the first day after that period of account.
2
The Commissioners for His Majesty’s Revenue and Customs may by regulations specify, in relation to a claim notification—
a
information to be provided with the notification;
b
the form and manner in which the notification is to be made.

“R&D claim”
1142B
For the purposes of this Part an “R&D claim” means a claim under—
a
section
1042C
(R&D expenditure credits),
b
section 1044 (relief for SMEs: additional deduction), or
c
section 1054 (entitlement to R&D tax credit).

Right to payment of credit inalienable
1142C
1
The right of a company to be paid an amount of R&D expenditure credit or R&D tax credit may not be assigned.
2
Accordingly, a purported assignment of such a right, or an agreement to assign such a right, is void.
3
References to assignment in this section are to be read in Scotland as references to assignation.

General rule against payments of credit to nominees
1142D
1
Where an amount of R&D expenditure credit or R&D tax credit is owed to a company, an officer of Revenue and Customs may not pay the amount to a person other than the company (even on the instruction or at the request of the company).
2
Subsection
(1)
does not apply if—
a
the company requests that payment be made to a person connected with the company, or
b
the officer is satisfied that exceptional circumstances make payment to the company impracticable or inconvenient.

Orders and regulations: ancillary provision
1142E
Any order or regulations under this Part may—
a
contain incidental, supplemental, consequential and transitional provision and savings;
b
make different provision for different purposes ....
Words in s. 1048(4)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 667(3)(a) (with Sch. 2)
S. 1130(1) substituted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 36(2)
Words in s. 1048(1) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 133(2)
S. 1139 omitted (with effect in accordance with s. 13(8) of the amending Act) by virtue of Finance (No. 3) Act 2010 (c. 33), s. 13(6)
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
S. 1126(7) inserted (with effect in accordance with s. 28(7) of the amending Act) by Finance Act 2015 (c. 11), s. 28(2)
Words in s. 1129(4) inserted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 35(5)(a)
Words in s. 1048(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 667(2)(b) (with Sch. 2)
S. 1058(1) excluded by 2010 c. 4, s. 357PD (as inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1)
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. 1125 applied (with modifications) by 2010 c. 4, s. 357BLB(7)(c) (as inserted (with effect in accordance with s. 64(7) of the amending Act) by Finance Act 2016 (c. 24), s. 64(3))
Word in s. 1055(2)(b) substituted (in relation to expenditure incurred on or after 1.4.2023) by Finance Act 2023 (c. 1), s. 4(3)(c)(4)
S. 1131(1)(b) substituted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 37
S. 1142(1)(c) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 676(a) (with Sch. 2)
Words in s. 1048(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 667(3)(b) (with Sch. 2)
Words in s. 1129(2)(b) substituted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 35(3)
S. 1064 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. 4(3)
Pt. 13 Ch. 3 omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 14
Words in s. 1123(5) omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 16(21) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)
S. 1045(3) 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. 3(4)(b)
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. 1059 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. 15(3)
S. 1044(3) 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. 3(3)
Words in s. 1128(7) substituted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 34(2)
S. 1082 omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 18
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
Ss. 1126A, 1126B inserted (with effect in accordance with s. 28(7) of the amending Act) by Finance Act 2015 (c. 11), s. 28(3)
S. 1131(3) inserted (with effect in accordance with Sch. 1 para. 28 of the amending Act) by Finance Act 2020 (c. 14), Sch. 1 para. 23(3) (with Sch. 1 paras. 30-34)
S. 1055 excluded by 2010 c. 4, s. 357PC (as inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1)
Ss. 1126-1126B applied (with modifications) by 2010 c. 4, s. 357BLB(7)(d) (as inserted (with effect in accordance with s. 64(7) of the amending Act) by Finance Act 2016 (c. 24), s. 64(3))
S. 1040ZA inserted (with effect in accordance with Sch. 18 para. 23 of the amending Act) by Finance Act 2013 (c. 29), Sch. 18 paras. 10, 22; S.I. 2013/1817, art. 2(2); S.I. 2014/1962, art. 2(3)
Pt. 13 Ch. 5 omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 16
Pt. 13 Ch. 3 omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 14; and words in s. 1066(5) inserted (with effect in accordance with s. 28(7) of the amending Act) by Finance Act 2015 (c. 11), s. 28(4)(i)
Words in s. 1056(2)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 669(2)(a) (with Sch. 2)
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
Words in s. 1056(2)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 669(2)(b) (with Sch. 2)
Words in s. 1048(3)(a) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 133(3)(b)
Words in s. 1137(1)(b) omitted (with effect in accordance with s. 47(15) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 47(8)
Words in s. 1041 substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 666 (with Sch. 2)
Words in s. 1119(3) substituted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by Finance Act 2013 (c. 29), Sch. 15 para. 21
S. 1062(2) excluded by 2010 c. 4, s. 357PE (as inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1)
Words in s. 1056(3)(a) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 134(b)
Words in s. 1129(5) substituted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 35(6)(a)
S. 1124 applied (with modifications) by 2010 c. 4, s. 357BLB(7)(b) (as inserted (with effect in accordance with s. 64(7) of the amending Act) by Finance Act 2016 (c. 24), s. 64(3))
S. 1131A inserted (with effect in accordance with Sch. 1 para. 28 of the amending Act) by Finance Act 2020 (c. 14), Sch. 1 para. 23(4) (with Sch. 1 paras. 30-34)
S. 1129(1)(b)(c) substituted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 35(2)
Words in s. 1058(1) inserted (with effect in accordance with Sch. 3 para. 4 of the amending Act) by Finance Act 2021 (c. 26), Sch. 3 para. 2(2)(a)
Word in s. 1062(2) omitted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 135(b)
Pt. 13 Ch. 4 omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 15
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 s. 1048(5) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 133(5)
Words in s. 1056(3)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 669(3)(a) (with Sch. 2)
S. 1042(3) omitted (with effect in accordance with s. 47(15) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 47(4)
Words in s. 1056(2)(c) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 134(a)
Words in s. 1049(3) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 668 (with Sch. 2)
Words in s. 1062(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 670 (with Sch. 2)
S. 1048(3)(za) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 133(3)(a)
S. 1058(2) substituted (with effect in accordance with Sch. 3 para. 4 of the amending Act) by Finance Act 2021 (c. 26), Sch. 3 para. 2(4)
S. 1083 omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 19
Words in s. 1129(7) substituted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 35(7)
S. 1040ZA(4) inserted (with effect in accordance with Sch. 4 para. 17 of the amending Act) by Finance Act 2014 (c. 26), Sch. 4 paras. 11, 16; S.I. 2014/2228, art. 2
S. 1069 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. 5(3)
S. 1050 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. 3(5)
Words in s. 1129(3) substituted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 35(4)(a)
Words in s. 1130(2) substituted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 36(3)
S. 1123 applied (with modifications) by 2010 c. 4, s. 357BLB(7)(a) (as inserted (with effect in accordance with s. 64(7) of the amending Act) by Finance Act 2016 (c. 24), s. 64(3))
Ss. 1127-1131 applied (with modifications) by 2010 c. 4, s. 357BLB(7)(e) (as inserted (with effect in accordance with s. 64(7) of the amending Act) by Finance Act 2016 (c. 24), s. 64(3))
S. 1040ZA(5) inserted (for specified purposes and with effect in accordance with Sch. 6 paras. 20, 21(1)(b) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 6 para. 12
Word in s. 1045(7) substituted (in relation to expenditure incurred on or after 1.4.2023) by Finance Act 2023 (c. 1), s. 4(3)(b)(4)
S. 1129(4A) inserted (with effect in accordance with Sch. 1 para. 28 of the amending Act) by Finance Act 2020 (c. 14), Sch. 1 para. 23(2) (with Sch. 1 paras. 30-34)
S. 1128(9) inserted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 34(3)
Words in s. 1129(3)(a) substituted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 35(4)(b)
S. 1048(4A)-(4D) inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 133(4)
Words in s. 1142(1)(d) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 676(b) (with Sch. 2)
S. 1140 applied (with modifications) by 2010 c. 4, s. 357BLB(7)(g) (as inserted (with effect in accordance with s. 64(7) of the amending Act) by Finance Act 2016 (c. 24), s. 64(3))
Words in s. 1129(5) substituted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 35(6)(b)
S. 1132 applied (with modifications) by 2010 c. 4, s. 357BLB(7)(f) (as inserted (with effect in accordance with s. 64(7) of the amending Act) by Finance Act 2016 (c. 24), s. 64(3))
S. 1075 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. 6(3)
S. 1128 modified by 2010 c. 4, s. 357WBA(3) (as inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), Sch. 7 para. 15)
S. 1062(3) excluded by 2010 c. 4, s. 357PE (as inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1)
Words in s. 1123(6) substituted (31.12.2020) by The Taxes (State Aid) (Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1499), regs. 1, 5(2)
Words in s. 1056(2)(c) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 669(2)(c) (with Sch. 2)
S. 1058(1)(aa) and word inserted (with effect in accordance with Sch. 3 para. 4 of the amending Act) by Finance Act 2021 (c. 26), Sch. 3 para. 2(2)(b)
Words in s. 1062(2) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 135(a)
Words in s. 1056(3)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 669(3)(b) (with Sch. 2)
Word in s. 1044(8) substituted (in relation to expenditure incurred on or after 1.4.2023) by Finance Act 2023 (c. 1), s. 4(3)(a)(4)
S. 1058(1)(b) and the word immediately preceding it 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. 15(2)
S. 1124(5)(6) applied by 2010 c. 4, s. 357BJB(7) (as inserted (with effect in accordance with s. 64(7) of the amending Act) by Finance Act 2016 (c. 24), s. 64(3))
Words in s. 1129(4)(a) substituted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 35(5)(b)
Words in s. 1048(2) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 667(2)(a) (with Sch. 2)
S. 1056 applied by 2010 c. 4, s. 357PC (as inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1)
Words in s. 1126(3) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(4)(b), 20
Words in s. 1126(1) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(4)(b), 20
S. 1125(1A)(1B) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(3)(c), 20
S. 1125(1)(aa)(ab) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(3)(b)(iii), 20
Pt. 13 Ch. 4 omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 15; and words in s. 1071(7) inserted (with effect in accordance with s. 28(7) of the amending Act) by Finance Act 2015 (c. 11), s. 28(4)(k)
Words in s. 1119(1) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 16(1)(a), 20
Words in s. 1126B(1) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(7)(a)(i), 20
Words in s. 1126B(2)(a) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(7)(b)(i), 20
S. 1126ZA inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(5), 20
Words in s. 1125(1) substituted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(3)(b)(i), 20
S. 1139A inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 18(2), 20
Words in s. 1126(2) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(4)(b), 20
Pt. 13 Ch. 3 omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 14; and words in s. 1067(5) inserted (with effect in accordance with s. 28(7) of the amending Act) by Finance Act 2015 (c. 11), s. 28(4)(j)
S. 1054A inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 2(5), 20
Words in s. 1119(2) substituted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 16(1)(b), 20
S. 1126B(4)(aa) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(7)(c), 20
S. 1045A inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 2(3), 20
Words in s. 1126 heading inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(4)(a), 20
Words in s. 1126B(2)(b) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(7)(b)(ii), 20
Pt. 13 Ch. 5 omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 16; and words in s. 1077(6) inserted (with effect in accordance with s. 28(7) of the amending Act) by Finance Act 2015 (c. 11), s. 28(4)(m)
Pt. 13 Ch. 4 omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 15; and words in s. 1072(8) inserted (with effect in accordance with s. 28(7) of the amending Act) by Finance Act 2015 (c. 11), s. 28(4)(l)
Pt. 13 Ch. 5 omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 16; and words in s. 1078(7) inserted (with effect in accordance with s. 28(7) of the amending Act) by Finance Act 2015 (c. 11), s. 28(4)(n)
Words in s. 1125 heading inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(3)(a), 20
S. 1120(6A) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 16(2)(a), 20
Words in s. 1126A heading inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(6), 20
Words in s. 1120(7) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 16(2)(b), 20
Word in s. 1125(1)(a) omitted (with effect in relation to accounting periods beginning on or after 1.4.2023) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(3)(b)(ii), 20
Ss. 1142A, 1142B inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 2(6), 20 Edit
Words in s. 1126(5) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(4)(b), 20
Ss. 1120A, 1120B inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 16(3), 20
Words in s. 1125 cross-heading inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(2), 20
Words in s. 1126(6) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(4)(b), 20
Word in s. 1126B(1) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(7)(a)(ii), 20
Words in s. 1134(3)(c) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 6(b), 20
Words in s. 1126(4) inserted (with effect in relation to accounting periods beginning on or after 1.4.2023) by virtue of Finance (No. 2) Act 2023 (c. 30), Sch. 1 paras. 3(4)(b), 20
S. 1142C inserted (22.2.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(16), 16 (with Sch. 1 paras. 17, 18)
S. 1142D inserted (with effect in accordance with Sch. 1 para. 17(2) of the amending Act) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(17), 16 (with Sch. 1 para. 18)
S. 1142E inserted (22.2.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(18), 16 (with Sch. 1 para. 18)
S. 1040ZA(A1) inserted (22.2.2024) by Finance Act 2024 (c. 3), Sch. 2 para. 5(3) (with Sch. 2 paras. 16(1), 17-25)
S. 1142B modified (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 16, 19; S.I. 2024/286, reg. 2
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
Pt. 13 Ch. 1A inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 5, 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Pt. 13 Ch. 2 heading substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(2), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Pt. 13 Ch. 6 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. 7, 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Pt. 13 Ch. 8 substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 8, 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1133 and cross-heading substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(7), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1134 heading substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(8)(a), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1060 heading substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(14)(a), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1142 heading substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(14)(a), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Ss. 1058A-1058D 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. 6(13), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Ss. 1052-1053A substituted for ss. 1052-1053 (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(9), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1045ZA inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(6), 16 (with Sch. 1 paras. 18, 21); S.I. 2024/286, reg. 2
S. 1045ZA(2)(3) modified (22.2.2024) by Finance Act 2024 (c. 3), Sch. 1 para. 21(3)(4) (as amended (with effect in accordance with s. 30(2) of the amending Act) by Finance Act 2025 (c. 8), s. 30(1))
S. 1062A inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(15), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1140A inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(13), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1132A inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(6), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Ss. 1138A, 1138B inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(12), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1142(5)(6) inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(14)(c), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1039 substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 4(2), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1040 substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 4(3), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1040A 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. 4(4), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1043 substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(3), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1044(2A) inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(4)(b), 16 (with Sch. 1 paras. 18, 20); S.I. 2024/286, reg. 2
S. 1044(5A)(5B) inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(4)(c), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1044(1) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(4)(a), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1044(6) inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(4)(d)(i), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1044(6) 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. 6(4)(d)(ii), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1044(7) inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(4)(e), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1044(9) 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. 6(4)(f), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1045(2A) inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(5)(b), 16 (with Sch. 1 paras. 18, 20); S.I. 2024/286, reg. 2
S. 1045(4A) inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(5)(c), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1045(1) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(5)(a), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1045(5) inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(5)(d)(i), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1045(5) 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. 6(5)(d)(ii), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1045(9) 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. 6(5)(e), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1046 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. 6(7), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1051 substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(8), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1054(2) inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(10)(a)(i), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1054(2) 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. 6(10)(a)(ii), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1054(4) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(10)(b), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1054(5) 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. 6(10)(c), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1057 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. 6(11), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1058(1)(a) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(12)(a)(i), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1058(1)(aa) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(12)(a)(ii), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1058(3) 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. 6(12)(d), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1058(2)(b) 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. 6(12)(c), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1058(2)(c) 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. 6(12)(c), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1058(1A)-(1C) 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. 6(12)(b), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1060(4)-(7) 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. 6(14)(b), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1126B(3) 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. 9(2), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1128(9) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(3), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1129(3) 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. 9(4)(a), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1129(3)(d) and word inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(4)(b), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1131(4) inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(5)(b), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1131(2) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(5)(a), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1134(1)(a)(b) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(8)(b), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1134(1)(c) 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. 9(8)(c)(i), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1134(1)(c) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(8)(c)(ii), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1134(2) 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. 9(8)(d)(i), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1134(2)(b) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(8)(d)(ii), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1134(3) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(8)(e)(i), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1134(3)(e) substituted for s.1134(3)(d) (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(8)(e)(iv), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1134(3)(a) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(8)(e)(ii), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1134(3)(a) 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. 9(8)(e)(iii), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1134(4)(a) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(8)(f)(i), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1134(4)(b) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(8)(f)(ii), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1134(4)(b) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(8)(f)(iii), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1134(5) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(8)(g), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1134(6) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(8)(h), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1135(1) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(9)(a), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1135(2) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(9)(b)(i), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1135(2) 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. 9(9)(b)(ii), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1135(4) 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. 9(9)(c), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1136 substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(10), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
S. 1138 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. 9(11), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Words in s. 1142(1) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(14)(b), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Word in s. 1142B(a) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 9(15), 16 (with Sch. 1 paras. 18, 19); S.I. 2024/286, reg. 2
S. 1138A applied (1.4.2024) by The Research and Development (Chapter 2 Relief) Regulations 2024 (S.I. 2024/348), regs. 1(1), 3 (with reg. 2)
S. 1112J and cross-heading substituted (with effect in accordance with s. 29(9) of the amending Act) by Finance Act 2025 (c. 8), s. 29(3)(9)
S. 1112A(6) substituted (with effect in accordance with s. 29(9) of the amending Act) by Finance Act 2025 (c. 8), s. 29(2)(9)
S. 1138A(5) inserted (with effect in accordance with s. 29(9) of the amending Act) by Finance Act 2025 (c. 8), s. 29(4)(b)(9)
S. 1138A(1)(b) substituted (with effect in accordance with s. 29(9) of the amending Act) by Finance Act 2025 (c. 8), s. 29(4)(a)(9)
Words in s. 1142E(b) omitted (with effect in accordance with s. 29(9) of the amending Act) by virtue of Finance Act 2025 (c. 8), s. 29(5)(9)