Section 1042B Entitlement to creditF1

United Kingdom

(1)

A company is entitled to an R&D expenditure credit for an accounting period if it meets conditions A, B and C in this section.

(2)

Condition A is that the company carries on a trade in the period.

(3)

Condition B is that the company incurs expenditure that is both—

(a)

allowable as a deduction in calculating for corporation tax purposes the profits of the trade for the period, and

(b)

qualifying Chapter 1A expenditure by virtue of section 1042D, 1042E or 1042F.

(4)

Condition C is that the company is not an ineligible company (see section 1142).

(5)

The amount of the credit is the relevant percentage (see section 1042G) of the expenditure that satisfies condition B.

Annotations

F1: Pt. 13 Ch. 1A inserted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 5, 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2

F1: Words in Pt. 13 heading omitted (with effect in relation to accounting periods beginning on or after 1.4.2024) by virtue of Finance Act 2024 (c. 3), Sch. 1 paras. 3, 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2