Corporation Tax Act 2010

[F1357PDTax credit under section 1054 of CTA 2009: amount of tax creditU.K.
This section has no associated Explanatory Notes

(1)Section 1058(1) of CTA 2009 (amount of tax credit) does not apply to a company in relation to a qualifying trade it carries on in an accounting period in which it is a Northern Ireland company (and the following provisions of this section apply instead).

(2)The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company—

(a)has a Northern Ireland Chapter 2 surrenderable loss, but

(b)does not have a mainstream Chapter 2 surrenderable loss,

the amount of the loss mentioned in paragraph (a) multiplied by the relevant percentage.

(3)The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company—

(a)has a mainstream Chapter 2 surrenderable loss, but

(b)does not have a Northern Ireland Chapter 2 surrenderable loss,

the amount of the loss mentioned in paragraph (a) multiplied by the percentage specified in section 1058(1)(a) of CTA 2009.

(4)The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company has both a Northern Ireland Chapter 2 surrenderable loss and a mainstream Chapter 2 surrenderable loss, the sum of—

(a)the amount of the Northern Ireland Chapter 2 surrenderable loss multiplied by the relevant percentage, and

(b)the amount of the mainstream Chapter 2 surrenderable loss multiplied by the percentage specified in section 1058(1)(a) of CTA 2009.

(5)For the purposes of this section “the relevant percentage” means—

where—

A is the percentage specified in section 1058(1)(a) of CTA 2009;

B is the percentage specified in section 1044(8) of CTA 2009;

C is the adjusted section 1044 percentage as defined by section 357PC(6).]

Textual Amendments

F1Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1