Part 3Trading income
F1CHAPTER 6ATrade profits: R&D expenditure credits
Anti-avoidance
104XArtificially inflated claims for credit
(1)
To the extent that a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it is to be disregarded for the purpose of determining for an accounting period R&D expenditure credits to which a company is entitled under this Chapter.
(2)
Arrangements are entered into wholly or mainly for a “disqualifying purpose” if their main object, or one of their main objects, is to enable a company to obtain—
(a)
an R&D expenditure credit under this Chapter to which it would not otherwise be entitled, or
(b)
an R&D expenditure credit under this Chapter of a greater amount than that to which it would otherwise be entitled.
(3)
In this section “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.