Finance Act 2016

48 Cap on R&D aid

(1) CTA 2009 is amended as follows.

(2) In section 1114 (calculation of total R&D aid)—

(a) in the formula for “(N x CT)” substitute “N”, and

(b) in the definition of “N” for “relief” substitute “R&D expenditure credit”.

(3) In section 1118(1) (meaning of “notional relief”)—

(a) for “relief” in the first two places it occurs substitute “R&D expenditure credit”,

(b) for “Chapter 5 (relief for large companies)” substitute “Chapter 6A of Part 3 (trade profits: R&D expenditure credits)”, and

(c) in the heading for “relief” substitute “R&D expenditure credit”.

(4) The amendments made by this section have effect in relation to expenditure incurred on or after 1 April 2016.