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Schedules

Schedule 1U.K.Relief for research and development

Part 3U.K.Amendments to Schedule 18 to FA 1998

Power of HMRC to remove R&D claims made in error from returnU.K.

14In Part 9A (claims for R&D expenditure credits or R&D tax relief), after paragraph 83EA (inserted by paragraph 13) insert—

Removal from return of claims made in error

83EB(1)This paragraph applies, in relation to a claim to which this Part of this Schedule applies (the “original claim”), where an officer of Revenue and Customs—

(a)reasonably believes that a claimant company has failed to comply with a requirement relating to the making of the claim (and accordingly that the claim has been made in error), and

(b)exercises the power under paragraph 16(1) to make a correction by removing the claim from the company tax return in which it is made.

(2)Sub-paragraphs (4) and (5) of paragraph 16 do not apply in relation to the correction (and accordingly the claimant company may not reject the correction).

(3)The claimant company may, within 90 days beginning with the date of the notice issued under paragraph 16(3), send written representations to an officer of Revenue and Customs objecting to the notice on the grounds that a matter stated in the notice was incorrect.

(4)An officer of Revenue and Customs must consider any representations made under sub-paragraph (3).

(5)Having considered the representations, the officer must determine whether to—

(a)confirm the notice, or

(b)withdraw the notice,

and must notify the claimant company accordingly.

(6)Nothing in sub-paragraph (2) prevents the claimant company from amending its company tax return to make a new claim to which this Part of this Schedule would apply in respect of the expenditure to which the original claim related (but see sub-paragraph (7)).

(7)Where, in relation to the original claim—

(a)a claim notification (within the meaning of section 1142A of the Corporation Tax Act 2009) was required to be made, and

(b)no claim notification was made,

the company may not make a new claim to which this Part of this Schedule would apply in respect of the expenditure to which the original claim related.