C1Part 3Trading income
F1CHAPTER 6ATrade profits: R&D expenditure credits
Pt. 3 Ch. 6A inserted (with effect in accordance with Sch. 15 para. 27 of the amending Act) by Finance Act 2013 (c. 29), Sch. 15 para. 1
Claims for credits
104AR&D expenditure credits
1
A company carrying on a trade may make a claim for an amount (an “R&D expenditure credit”) to be brought into account as a receipt in calculating the profits of the trade for an accounting period.
2
The company is entitled to an R&D expenditure credit for the accounting period if the company has qualifying R&D expenditure which is allowable as a deduction in calculating for corporation tax purposes the profits of the trade for the accounting period.
3
In the case of a company that is a small or medium-sized enterprise in the accounting period, the company's “qualifying R&D expenditure” means—
a
its qualifying expenditure on sub-contracted R&D (see section 104C),
b
its subsidised qualifying expenditure (see section 104F), and
c
its capped R&D expenditure (see section 104I).
4
In the case of a company that is a large company throughout the accounting period, the company's “qualifying R&D expenditure” means—
a
its qualifying expenditure on in-house direct research and development (see section 104J),
b
its qualifying expenditure on contracted out research and development (see section 104K), and
c
its qualifying expenditure on contributions to independent research and development (see section 104L).
5
The amount of an R&D expenditure credit to which a company is entitled is determined in accordance with section 104M.
6
Section 104N contains provision about the effect of a successful claim for an R&D expenditure credit.
7
Sections 104U to 104W contain provision about insurance companies and group companies.
F27A
Section 104WA contains provision about ineligible companies.
8
Section 104X contains anti-avoidance provision.
9
Section 104Y contains definitions.
10
For information about the procedure for making claims under this Chapter, see Schedule 18 to FA 1998, in particular Part 9A of that Schedule.
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)