Schedules
F1SCHEDULE A1First-year tax credits
Part 1Entitlement to first-year tax credits
Entitlement to first-year tax credits
1
1
A company may claim a first-year tax credit for a chargeable period in which it has a surrenderable loss, unless it is an excluded company in relation to that chargeable period.
2
A company has a surrenderable loss in a chargeable period if in that chargeable period—
a
a first-year allowance is made to the company in respect of relevant first-year expenditure (see paragraph 3) incurred for the purposes of a qualifying activity the profits of which are chargeable to corporation tax, and
b
the company incurs a loss in carrying on that qualifying activity (see paragraphs 4 to 9).
3
The amount of the surrenderable loss is equal to—
a
so much of the loss incurred in carrying on the qualifying activity as is unrelieved (see paragraphs 10 to 16), or
b
if less, the amount of the first-year allowance made in respect of the relevant first-year expenditure in the chargeable period in question.
4
A company is an excluded company in relation to a chargeable period if at any time during that period it is entitled to make a claim under—
a
section 488 of ICTA (rent etc of co-operative housing associations disregarded for tax purposes),
b
section 489 of that Act (rent etc of self-build societies disregarded for tax purposes),
c
section 505 of that Act (exemption from tax for charitable companies), or
d
section 508 of that Act (exemption from tax for scientific research organisations).
Sch. A1 inserted (with effect in accordance with Sch. 25 para. 9 of the amending Act) by Finance Act 2008 (c. 9), Sch. 25 para. 5