In section 104A (R&D expenditure credits), after subsection (7) insert—

“(7A)

Section 104WA contains provision about ineligible companies.”

After section 104W insert—

“Ineligible companies

104WAIneligible companies

(1)

No claim for an R&D expenditure credit may be made in respect of expenditure incurred by an ineligible company.

(2)

In this section, “ineligible company” means a company that is—

(a)

an institution of higher education (as defined by section 1142(1)(b)),

(b)

a charity, or

(c)

a company of a description prescribed by the Treasury by regulations.”

In section 1310(4) (orders and regulations subject to affirmative procedure), before paragraph (zza) insert—

“(zzza)

section 104WA (ineligible companies for the purposes of R&D expenditure credits),”.