F1PART 8BTrading profits taxable at the Northern Ireland rate
CHAPTER 9Research and development expenditure
Chapter 2 of Part 13 of CTA 2009
357PDTax credit under section 1054 of CTA 2009: amount of tax credit
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).
F22
The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company has a Northern Ireland Chapter 2 surrenderable loss but does not have a mainstream Chapter 2 surrenderable loss, the lesser of—
a
the amount of the Northern Ireland Chapter 2 surrenderable loss multiplied by the relevant percentage, and
b
the amount F10of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period.
F62A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F33
The amount of the R&D tax credit to which the company is entitled for the accounting period is, where the company has a mainstream Chapter 2 surrenderable loss but does not have a Northern Ireland Chapter 2 surrenderable loss, the lesser of—
a
the amount of the mainstream Chapter 2 surrenderable loss multiplied by the percentage specified in section 1058(1)(a) of CTA 2009, and
b
the amount F11of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period.
F73A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 F4lesser of—
a
the sum of—
i
the amount of the Northern Ireland Chapter 2 surrenderable loss multiplied by the relevant percentage, and
ii
the amount of the mainstream Chapter 2 surrenderable loss multiplied by the percentage specified in section 1058(1)(a) of CTA 2009, and
b
the amount F8of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period.
F94A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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).
Pt. 8B inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1