Finance Act 2024

Part 2 U.K. Consequential amendments

FA 1998 U.K.

10 (1) Schedule 18 to FA 1998 (company tax returns) is amended as follows.

(2) In paragraph 52(2A)(b) (application of provisions about discovery assessments to amounts paid by way of R&D expenditure credit), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”.

(3) In paragraph 83A (application of Part 9A of the Schedule to claims for R&D relief), for the words from “to” to the end substitute “to claims for relief under Part 13 of the Corporation Tax Act 2009 (relief for research and development).”

(4) In paragraph 83E (deadlines for claiming R&D relief)—

(a) in sub-paragraph (2)(a), after “under” insert “Chapter 2 of”;

(b) in sub-paragraph (3), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”.

Commencement Information

I1 Sch. 1 para. 10: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2

FA 2007 U.K.

11 In Schedule 24 to FA 2007 (penalties for errors), in paragraph 28(fa)(ia) (“corporation tax credit” includes R&D expenditure credit), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”.

Commencement Information

I2 Sch. 1 para. 11: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2

CTA 2009 U.K.

12 (1) CTA 2009 is amended as follows.

(2) In Part 14A (inserted by paragraph 1 of Schedule 2)—

(a) in section 1179DT (expenditure attracting R&D relief not eligible for audiovisual expenditure credit), omit paragraph (a);

(b) in section 1179FL (expenditure attracting R&D relief not eligible for video game expenditure credit), omit paragraph (a).

(3) In section 1195(3A) (expenditure attracting R&D relief or television relief not eligible for film tax relief)—

(a) in paragraph (a), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”;

(b) in paragraph (b), for “Part 13 (additional relief for expenditure on research and development)” substitute “Chapter 2 of Part 13 (relief for loss-making, R&D-intensive SMEs)”.

(4) In section 1216C(4) (expenditure attracting R&D relief not eligible for television relief)—

(a) in paragraph (a), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”;

(b) in paragraph (b), for “Part 13 (additional relief for expenditure on research and development)” substitute “Chapter 2 of Part 13 (relief for loss-making, R&D-intensive SMEs)”.

(5) In section 1217C(4) (expenditure attracting R&D relief not eligible for video game relief)—

(a) in paragraph (a), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”;

(b) in paragraph (b), for “Part 13 (additional relief for expenditure on research and development)” substitute “Chapter 2 of Part 13 (relief for loss-making, R&D-intensive SMEs)”.

(6) In section 1217JA(2) (expenditure attracting R&D relief not eligible for theatre relief)—

(a) omit paragraph (a);

(b) in paragraph (b), omit “additional”.

(7) In section 1217RF(2) (expenditure attracting R&D relief or other creative sector relief not eligible for orchestra relief), omit paragraph (za) (inserted by paragraph 8 of Schedule 4).

(8) In section 1218ZCG(2) (expenditure attracting R&D relief or other creative sector relief not eligible for museum and gallery exhibition relief)—

(a) omit paragraph (a);

(b) in paragraph (b), omit “additional”.

(9) In section 1310(4) (orders and regulations subject to affirmative procedure)—

(a) omit paragraph (zzza);

(b) after paragraph (zb) insert—

“(zc) section 1142(1)(e) (companies ineligible for R&D relief),”.

(10) In Schedule 4 (index of defined expressions)—

(a) omit the following entries—

• “capped R&D expenditure (in Chapter 6A of Part 3)”;

• “large company (in Chapter 6A of Part 3)”;

• “payment period (in Chapter 6A of Part 3”;

• “qualifying body (in Chapter 6A of Part 3)”;

• “qualifying body (in Part 13)”;

• “qualifying expenditure on sub-contracted R&D (in Chapter 6A of Part 3)”;

• “qualifying R&D expenditure (in Chapter 6A of Part 3)”;

• “relevant payment to the subject of a clinical trial (in Chapter 6A of Part 3)”;

• “relevant research and development (in Chapter 6A of Part 3)”;

• “research and development (in Chapter 6A of Part 3)”;

• “software, data licences, cloud computing services or consumable items (in Chapter 6A of Part 3)”;

• “staffing costs (in Chapter 6A of Part 3)”;

• “sub-contractor payment (and sub-contractor) (in Part 13)”;

• “subsidised expenditure (in Part 13)”;

• “subsidised qualifying expenditure (in Chapter 6A of Part 3)”;

(b) at the appropriate places insert—

“contracted out (and related expressions) (in Part 13)

section 1133”;

“contractor payment (in Part 13)

section 1133”;

“group (in Part 13)

section 1140A”;

“ineligible company (in Part 13)

section 1142”.

Commencement Information

I3 Sch. 1 para. 12: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2

CTA 2010 U.K.

13 (1) CTA 2010 is amended as follows.

(2) In section 269DA(2) (meaning of banking company’s “surcharge profits”), in the definition of “RDEC”, for “Chapter 6A of Part 3 of CTA 2009 (trade profits: R&D expenditure credits)” substitute “Chapter 1A of Part 13 of CTA 2009 (R&D expenditure credit)”.

(3) In Part 8A (profits from exploiting patents etc)—

(a) in section 357BJB(3) (R&D expenditure not to be routine deduction in calculating IP profits), in paragraph (a)(ii), for “Chapter 6A of Part 3 of CTA 2009” substitute “Chapter 1A of that Part”;

(b) in section 357BLB(7)(e) (application of sections 1127 to 1131 of CTA 2009 for purpose of determining in-house R&D expenditure under Part 8A), at the end insert “as those provisions had effect before the amendments made by paragraph 9 of Schedule 1 to FA 2024,”;

(c) in section 357CG(4)(a) (R&D expenditure credit to be deducted in calculating IP profits), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”.

(4) In Chapter 9 of Part 8B (treatment of R&D credits and relief for purposes of Northern Ireland rate)—

(a) in section 357P(1) (overview of Chapter), for paragraphs (a) and (b) substitute—

“(a) Chapter 1A of Part 13 (R&D expenditure credit), and

(b) Chapter 2 of that Part (relief for loss-making, R&D-intensive SMEs).”;

(b) in the italic heading before section 357PA, for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”;

(c) in section 357PA (R&D expenditure credit to form part of mainstream profits or losses)—

(i) in the heading, omit “under Chapter 6A of Part 3 of CTA 2009”;

(ii) in subsection (1)(a), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”;

(d) in section 357PD (amount of R&D tax credit for Northern Ireland company)—

(i) in subsections (2)(b), (3)(b) and (4)(b), for “given by section 1058(1A) of CTA 2009” substitute “of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period”;

(ii) omit subsections (2A), (3A) and (4A);

(iii) after subsection (5) insert—

“(6) Sections 1112B to 1112E of CTA 2009 (determination of cap by reference to PAYE and NIC liabilities) apply for the purposes of subsections (2)(b), (3)(b) and (4)(b) as they apply for the purposes of section 1058(1) of CTA 2009.”

Commencement Information

I4 Sch. 1 para. 13: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2

TIOPA 2010 U.K.

14 In the following provisions of TIOPA 2010, for “within the meaning of section 104A” substitute “under Chapter 1A of Part 13”—

(a) section 407(3)(a) (R&D expenditure credit not to be taken into account in determining tax-EBITDA);

(b) section 416(2A) (R&D expenditure credit not to be taken into account in determining worldwide group’s profit before tax).

Commencement Information

I5 Sch. 1 para. 14: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2

FA 2013 U.K.

15 In Schedule 43C to FA 2013 (penalties in connection with the general anti-abuse rule), in paragraph 11(e)(ii) (“corporation tax credit” includes R&D expenditure credit), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”.

Commencement Information

I6 Sch. 1 para. 15: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2