Part 13

... expenditure on research and development
Chapter 9

Supplementary

Miscellaneous

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.
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. 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)
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
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
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
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