F1PART 8BTrading profits taxable at the Northern Ireland rate
CHAPTER 9Research and development expenditure
Chapter 2 of Part 13 of CTA 2009
357PDTax credit under section 1054 of CTA 2009: amount of tax credit
(1)
Section 1058(1) of CTA 2009 (amount of tax credit) does not apply to a company in relation to a qualifying trade it carries on in an accounting period in which it is a Northern Ireland company (and the following provisions of this section apply instead).
F2(2)
The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company has a Northern Ireland Chapter 2 surrenderable loss but does not have a mainstream Chapter 2 surrenderable loss, the lesser of—
(a)
the amount of the Northern Ireland Chapter 2 surrenderable loss multiplied by the relevant percentage, and
(b)
the amount F3of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period.
F4(2A)
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F5(3)
The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company has a mainstream Chapter 2 surrenderable loss but does not have a Northern Ireland Chapter 2 surrenderable loss, the lesser of—
(a)
the amount of the mainstream Chapter 2 surrenderable loss multiplied by the percentage specified in section 1058(1)(a) of CTA 2009, and
(b)
the amount F6of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period.
F7(3A)
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(4)
The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company has both a Northern Ireland Chapter 2 surrenderable loss and a mainstream Chapter 2 surrenderable loss, the F8lesser of—
(a)
the sum of—
(i)
the amount of the Northern Ireland Chapter 2 surrenderable loss multiplied by the relevant percentage, and
(ii)
the amount of the mainstream Chapter 2 surrenderable loss multiplied by the percentage specified in section 1058(1)(a) of CTA 2009, and
(b)
the amount F9of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period.
F10(4A)
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(5)
For the purposes of this section “the relevant percentage” means—
where—
A is the percentage specified in section 1058(1)(a) of CTA 2009;
B is the percentage specified in section 1044(8) of CTA 2009;
C is the adjusted section 1044 percentage as defined by section 357PC(6).