Part 13F4... expenditure on research and development

Annotations:
Amendments (Textual)
F4

Words in Pt. 13 heading 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. 3, 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2

Chapter 2F5Relief for loss-making, R&D-intensive SMEs

Annotations:
Amendments (Textual)
F5

Pt. 13 Ch. 2 heading 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(2), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2

Supplementary

1060F6Use of credit to pay corporation tax

1

This section applies if an R&D tax credit for an accounting period is payable to a company under this Chapter.

2

The amount payable in respect of—

a

the R&D tax credit, or

b

interest on the credit payable under section 826 of ICTA,

may be applied in discharging any liability of the company to pay corporation tax.

3

So far as the amount is so applied, the duty of the officer of Revenue and Customs to pay the credit under section 1054(4) is discharged.

F84

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F85

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F86

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F87

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1061Tax credit payment not income of company

A payment in respect of an R&D tax credit under this Chapter is not income of the company for any tax purposes.

1062Restriction on losses carried forward where tax credit claimed

1

This section applies if a company claims an R&D tax credit to which it is entitled for an accounting period.

C12

For the purposes of F2F3sections 45, 45A and 45B of CTA 2010 (relief of trading losses against future F1... profits) the company's trading loss for the period is treated as reduced by the amount of the surrendered loss for the period.

C23

The “amount of the surrendered loss” for the period means the amount of the Chapter 2 surrenderable loss in respect of which the company claims an R&D tax credit for the period.

1062AF7Insurance company to be treated as large company

An insurance company that carries on life assurance business in an accounting period is not to be treated for the purposes of this Chapter as a small or medium-sized enterprise in relation to that period.