2023 No. 813
Corporation Tax

The Relief for Research and Development (Content of Claim Notifications, Additional Information Requirements and Miscellaneous Amendments) Regulations 2023

Made
Laid before the House of Commons
Coming into force
The Commissioners for His Majesty’s Revenue and Customs make the following Regulations in exercise of the powers conferred by paragraph 83EA of Schedule 18 to the Finance Act 19981, section 132 of the Finance Act 19992, sections 135 and 136 of the Finance Act 20023 and section 1142A(2) of the Corporation Tax Act 20094 and now exercisable by them5.

Citation and commencement1.

These Regulations may be cited as the Relief for Research and Development (Content of Claim Notifications, Additional Information Requirements and Miscellaneous Amendments) Regulations 2023 and come into force on 8th August 2023.

Claim notifications2.

A claim notification under section 1142A of the Corporation Tax Act 2009 (requirement to make a claim notification) must include the information specified in Schedule 1.

Additional information to be provided in relation to R&D claims3.

A claim to which Part 9A of Schedule 18 to the Finance Act 1998 (requirement to provide additional information in relation to R&D claims)6 applies must include the information specified in Schedule 2.

Amendment of the Income and Corporation Taxes (Electronic Communications) Regulations 20034.

(1)

The Income and Corporation Taxes (Electronic Communications) Regulations 20037 are amended as follows.

(2)

In regulation 2 (scope of these Regulations)—

(a)

after paragraph (1)(a)(vi), omit “or”,

(b)

after paragraph (1)(a)(vii), omit “and”, and

(c)

after paragraph (1)(a)(vii), insert—

“(viii)

section 1142A of the Corporation Tax Act 2009, or

(ix)

paragraph 83EA(1) of Schedule 18 to the Finance Act 1998; and”.

(3)

In regulation 3 (use of electronic communication), in paragraph (2A)—

(a)

after “company tax return”, in the first place that expression occurs, insert “, claim notification under section 1142A of the Corporation Tax Act 2009 or additional information under paragraph 83EA of Schedule 18 to the Finance Act 1998”,

(b)

in the second sentence omit “only”,

(c)

omit the final sentence, and

(d)

at the end insert—

“This paragraph also applies to an amendment made on or after 8 August 2023 to a company tax return for an accounting period beginning on or after 1 April 2023, where the company tax return includes an R&D claim within the meaning of section 1142B of the Corporation Tax Act 2009 before or after the amendment. It does not apply to any other amendment to a company tax return.”.

Jim Harra
Justin Holliday
Two of the Commissioners for His Majesty’s Revenue and Customs

SCHEDULE 1Claim notifications

Regulation 2

1.

A claim notification under section 1142A of the Corporation Tax Act 2009 (requirement to make a claim notification) must include the information specified in the Table in respect of—

(a)

the company8,

(b)

the company officer responsible for ensuring the accuracy of the information provided under this Schedule,

(c)

any agent or tax adviser engaged by the company, or which has provided services to the company, in any capacity in relation to the R&D claim, and

(d)

the R&D claim9.

2.

This is the Table referred to in paragraph 1—

Subject

Specified information

the company

  1. (a)

    registered name, and

  2. (b)

    unique taxpayer reference number.

the company officer responsible for ensuring the accuracy of the information provided under this Schedule

  1. (a)

    name,

  2. (b)

    role in the company,

  3. (c)

    telephone number, and

  4. (d)

    email address.

agent(s) or tax adviser(s)

  1. (a)

    name (or, if the agent or adviser is a registered company, its registered number if available),

  2. (b)

    agent reference number,

  3. (c)

    business or trading name,

  4. (d)

    address of principal place of business,

  5. (e)

    email address,

  6. (f)

    telephone number, and

  7. (g)

    agent role (acting on research and development claim only, or acting on both research and development claim and other tax matters).

the R&D claim

  1. (a)

    the start date and the end date of the accounting period,

  2. (b)

    the start date and the end date of the period of account,

  3. (c)

    the number of research and development project(s), and

  4. (d)

    an overview of the research and development project(s) for the period of account.

SCHEDULE 2Additional information to be provided in relation to R&D claims

Regulation 3

1.

A claim to which Part 9A of Schedule 18 to the Finance Act 1998 (requirement to provide additional information in relation to R&D claims) applies must include the information specified in the Table in respect of—

(a)

the company,

(b)

the company officer responsible for ensuring the accuracy of the information provided under this Schedule,

(c)

any agent or tax adviser engaged by the company, or which has provided services to the company, in any capacity in relation to the R&D claim, and

(d)

the R&D claim.

2.

This is the Table referred to in paragraph 1—

Topic

Specified information

the company

  1. (a)

    registered name,

  2. (b)

    unique taxpayer reference number,

  3. (c)
    VAT registration number10 (if registered for VAT),
  4. (d)
    employer’s PAYE reference, within the meaning of regulation 2(1) of the Income Tax (Pay As You Earn) Regulations 200311.

the company officer responsible for ensuring the accuracy of the information provided under this Schedule

  1. (a)

    name,

  2. (b)

    role in the company,

  3. (c)

    telephone number, and

  4. (d)

    email address.

agent(s) or tax adviser(s)

  1. (a)

    name (or, if the agent or adviser is a registered company, its registered name),

  2. (b)

    agent reference number,

  3. (c)

    business or trading name,

  4. (d)

    address of principal place of business,

  5. (e)

    telephone number, and

  6. (f)

    email address.

the R&D claim

  1. (a)

    the start date and the end date of the accounting period,

  2. (b)

    the start date and the end date of the period of account,

  3. (c)

    research and development expenditure credit qualifying expenditure related to the UK research and development project(s),

  4. (d)

    small and medium-sized enterprise research and development tax relief qualifying expenditure related to the UK research and development project(s),

  5. (e)

    whether the qualifying expenditure relates to research and development activity in the UK,

  6. (f)
    whether section 1058D of the Corporation Tax Act 2009 (exceptions to tax credit cap)12 applies to the company and, if so, the reasons,
  7. (g)

    the number of research and development project(s),

  8. (h)

    a description of the type of research and development undertaken by the project(s),

  9. (i)

    a description of what scientific or technological knowledge existed at the start of your project(s) that you aimed to improve in the field with which your project(s) are concerned,

  10. (j)

    a description of the advance in scientific or technological knowledge that the project(s) aimed to achieve,

  11. (k)

    a description of the scientific or technological uncertainties that the project(s) faced,

  12. (l)

    a description of how the project(s) sought to overcome those scientific or technological uncertainties,

  13. (m)
    the number of externally provided workers13 that have been involved in the project(s),
  14. (n)

    the employer’s PAYE reference, within the meaning of regulation 2(1) of the Income Tax (Pay As You Earn) Regulations 2003, for all externally provided workers,

  15. (o)
    the amount of qualifying expenditure14 incurred in respect of the following—
    1. (i)
      staffing costs15,
    2. (ii)
      externally provided workers16,
    3. (iii)
      contracted out research and development (for Research and Development expenditure credit only)17,
    4. (iv)
      software or consumable items18,
    5. (v)
      relevant payments to the subjects of a clinical trial19,
    6. (vi)
      data licences20,
    7. (vii)
      cloud computing21, and
    8. (viii)
      contributions to independent research and development22 (for research and development expenditure credit only), and
  16. (p)
    for each of the amounts of qualifying expenditure specified under sub-paragraphs (o)(i) to (viii) above, the amount of that expenditure that is attributable to qualifying indirect activities, and for this purpose “qualifying indirect activities” has the meaning specified in the Guidelines on the Meaning of Research and Development for Tax Purposes issued by the Secretary of State for Business and Trade on 7 March 202323.
EXPLANATORY NOTE
(This note is not part of the Regulations)

Section 1142A of the Corporation Tax Act 2009 (“CTA09”) imposes a requirement for a company to make a claim notification for the purposes of provisions in Part 3 and Part 13 of CTA09. Regulation 2 specifies the information that must be provided by a company for the purposes of claim notifications made under section 1142A CTA09.

Part 9A of Schedule 18 to the Finance Act 1998 deals with claims for R&D expenditure credits or R&D tax relief. Paragraph 83EA of Schedule 18 to the Finance Act 1998 provides that a claim is invalid unless the claimant company has provided to an officer of Revenue and Customs certain additional information. Regulation 3 specifies the information that must be provided by the claimant company.

Regulation 4 makes an amendment to the Electronic Communications Regulations 2003 so that the claim notification made under Part 3 of CTA09 and additional information provided under paragraph 83EA(1) of Schedule 18 to the Finance Act 1998 and amended returns that relate to an R&D claim must be delivered electronically.

A Tax Information and Impact Note covering this instrument is published on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.