1058Amount of tax creditU.K.
(1)The amount of the R&D tax credit to which a company is entitled for an accounting period is [F1the lesser of]—
(a)[F214.5%] of the amount of the Chapter 2 surrenderable loss for the period, F3... [F4and]
[F5(aa)the amount of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period (see section 1112B).]
F3(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6(1A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6(1B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6(1C). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F7(2)The Treasury may by regulations—
(a)replace the percentage for the time being specified in subsection (1)(a) with a different percentage;]
F8(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F9(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F10(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Words in s. 1058(1) inserted (with effect in accordance with Sch. 3 para. 4 of the amending Act) by Finance Act 2021 (c. 26), Sch. 3 para. 2(2)(a)
F2Word in s. 1058(1)(a) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(12)(a)(i), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
F3S. 1058(1)(b) and the word immediately preceding it omitted (with effect in accordance with Sch. 3 para. 39 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 3 para. 15(2)
F4S. 1058(1)(aa) and word inserted (with effect in accordance with Sch. 3 para. 4 of the amending Act) by Finance Act 2021 (c. 26), Sch. 3 para. 2(2)(b)
F5S. 1058(1)(aa) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(12)(a)(ii), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
F6S. 1058(1A)-(1C) 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. 6(12)(b), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
F7S. 1058(2) substituted (with effect in accordance with Sch. 3 para. 4 of the amending Act) by Finance Act 2021 (c. 26), Sch. 3 para. 2(4)
F8S. 1058(2)(b) 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. 6(12)(c), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
F9S. 1058(2)(c) 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. 6(12)(c), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
F10S. 1058(3) 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. 6(12)(d), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
Modifications etc. (not altering text)
C1S. 1058(1) excluded by 2010 c. 4, s. 357PD (as inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1)