Corporation Tax Act 2010

[F1 357PD Tax credit under section 1054 of CTA 2009: amount of tax credit U.K.

(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).

(2) The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company—

(a) has a Northern Ireland Chapter 2 surrenderable loss, but

(b) does not have a mainstream Chapter 2 surrenderable loss,

the amount of the loss mentioned in paragraph (a) multiplied by the relevant percentage.

(3) The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company—

(a) has a mainstream Chapter 2 surrenderable loss, but

(b) does not have a Northern Ireland Chapter 2 surrenderable loss,

the amount of the loss mentioned in paragraph (a) multiplied by the percentage specified in section 1058(1)(a) of CTA 2009.

(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 sum of—

(a) the amount of the Northern Ireland Chapter 2 surrenderable loss multiplied by the relevant percentage, and

(b) the amount of the mainstream Chapter 2 surrenderable loss multiplied by the percentage specified in section 1058(1)(a) of CTA 2009.

(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).]

Textual Amendments

F1 Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1