1057Tax credit only available where company is going concernU.K.
(1)A company may only make a claim under section 1054 at a time when it is a going concern.
(2)If a company ceases to be a going concern after making a claim under section 1054, it is treated as if it had not made the claim (and accordingly there is treated as having been no payment of R&D tax credit to carry interest under section 826 of ICTA).
(3)Subsection (2) does not apply so far as the claim relates to an amount that was paid or applied before the company ceased to be a going concern.
(4)For the purposes of this section a company is a going concern if—
(a)its latest published accounts were prepared on a going concern basis, and
(b)nothing in those accounts indicates that they were only prepared on that basis because of an expectation that the company would receive relief or R&D tax credits under this Chapter F1....
[F2This is subject to subsection (4A).]
[F3(4A)A company is not a going concern at any time if it is in administration or liquidation at that time.
(4B)For the purposes of this section a company is in administration if—
(a)it is in administration under Part 2 of the Insolvency Act 1986 or Part 3 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)), or
(b)a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.
(4C)For the purposes of this section a company is in liquidation if—
(a)it is in liquidation within the meaning of section 247 of that Act or Article 6 of that Order, or
(b)a corresponding situation under the law of a country or territory outside the United Kingdom exists in relation to the company.]
(5)Section 436(2) of the Companies Act 2006 (meaning of “publication” of documents) has effect for the purposes of this section.
Textual Amendments
F1Words in s. 1057(4)(b) omitted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 3 para. 19
F2Words in s. 1057(4) inserted (with effect in accordance with Sch. 3 para. 40 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 11(2)
F3S. 1057(4A)-(4C) inserted (with effect in accordance with Sch. 3 para. 40 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 11(3)