C1

Part 6 Research and development allowances

Chapter 2 Qualifying expenditure

439AF1Qualifying expenditure incurred for purposes of NI rate activity

1

Subsection (2) applies if—

a

a company that does not have a Northern Ireland regional establishment incurs expenditure for the purposes of a trade,

b

the activities for the purposes of which the expenditure is incurred would, if the company were a NIRE company, be an NI rate activity treated as a separate trade, and

c

the company subsequently becomes a NIRE company.

2

The expenditure is to be treated as incurred on the first day of the first chargeable period in which the company is a NIRE company.

3

Subsection (4) applies if—

a

a partnership that does not have a Northern Ireland regional establishment incurs expenditure for the purposes of a trade,

b

the activities for the purposes of which the expenditure is incurred would, if the partnership were a Northern Ireland Chapter 7 firm, be an NI rate activity treated as a separate trade, and

c

the partnership subsequently becomes a Northern Ireland Chapter 7 firm.

4

The expenditure is to be treated as incurred on the first day of the first chargeable period in which the partnership is a Northern Ireland Chapter 7 firm.

5

In this section “Northern Ireland regional establishment” has the same meaning as in Part 8B of CTA 2010 (see Chapter 5 of that Part as read, in relation to a partnership, with section 357WA(4) of that Act).