Finance Act 2013

PART 2 Consequential amendments

FA 1998

4 Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended as follows.

5 In paragraph 10(2) (other claims and elections to be included in return), after “first-year tax credits” insert “, R&D expenditure credits”.

6 (1) Paragraph 52 (recovery of excessive repayments etc) is amended as follows.

(2) In sub-paragraph (2), after paragraph (b) insert—

“(bza) R&D expenditure credit under Chapter 6A of Part 3 of the Corporation Tax Act 2009,”.

(3) In sub-paragraph (5)—

(a) after paragraph (a) insert—

“(aa) an amount of R&D expenditure credit paid to a company for an accounting period,”;

(b) after “paragraph (a),” insert “(aa),”.

7 (1) Part 9A (claims for R&D tax relief) is amended as follows.

(2) In paragraph 83A (introduction), for the words after “applies” substitute “to—

(a) claims for R&D expenditure credits under Chapter 6A of Part 3 of the Corporation Tax Act 2009, and

(b) claims for R&D tax relief under Part 13 of that Act.”

(3) In paragraph 83C (content of claim), before “relief” insert “credit or”.

(4) Accordingly, the heading of the Part becomes “CLAIMS FOR R&D EXPENDITURE CREDITS OR R&D TAX RELIEF”.

FA 2007

8 In Schedule 24 to FA 2007 (penalties for errors), in paragraph 28(fa) (definition of “corporation tax credit”), after sub-paragraph (i) insert—

“(ia) an R&D expenditure credit under Chapter 6A of Part 3 of CTA 2009,”.

CTA 2010

9 Part 8A of CTA 2010 (profits arising from the exploitation of patents etc) is amended as follows.

10 In section 357CG (adjustments in calculating profits of trade), in subsection (4), after “amounts to be deducted are” insert “—

(a) the amount of any R&D expenditure credits (within the meaning of Chapter 6A of Part 3 of CTA 2009) brought into account in calculating the profits of the trade for the accounting period, and

(b)”.

11 In section 357CK (deductions that are not routine deductions), in subsection (3)—

(a) in paragraph (a), the words from “for which” to the end become sub-paragraph (i);

(b) after that sub-paragraph insert “, or

(ii) in respect of which the company is entitled to an R&D expenditure credit for the accounting period under Chapter 6A of Part 3 of CTA 2009,”;

(c) at the beginning of paragraph (b) insert “where the company obtains an additional deduction as mentioned in paragraph (a)(i),”.