C1Part 3Trading income

Annotations:
Modifications etc. (not altering text)

F1CHAPTER 6ATrade profits: R&D expenditure credits

Annotations:
Amendments (Textual)
F1

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.