Section 1058 Amount of tax credit

United Kingdom

C1(1)

The amount of the R&D tax credit to which a company is entitled for an accounting period is F1the lesser of—

(a)

F214.5% of the amount of the Chapter 2 surrenderable loss for the period, F3... F4and

F5(aa)

the amount of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period (see section 1112B).

(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6(1A)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1B)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1C)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(2)

The Treasury may by regulations—

(a)

replace the percentage for the time being specified in subsection (1)(a) with a different percentage;

F8(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9(c)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10(3)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

Textual amendments

F1: Words in s. 1058(1) inserted (with effect in accordance with Sch. 3 para. 4 of the amending Act) by Finance Act 2021 (c. 26), Sch. 3 para. 2(2)(a)
F2: Word in s. 1058(1)(a) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(12)(a)(i), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
F3: S. 1058(1)(b) and the word immediately preceding it omitted (with effect in accordance with Sch. 3 para. 39 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 3 para. 15(2)
F4: S. 1058(1)(aa) and word inserted (with effect in accordance with Sch. 3 para. 4 of the amending Act) by Finance Act 2021 (c. 26), Sch. 3 para. 2(2)(b)
F5: S. 1058(1)(aa) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(12)(a)(ii), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
F6: S. 1058(1A)-(1C) 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. 6(12)(b), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
F7: S. 1058(2) substituted (with effect in accordance with Sch. 3 para. 4 of the amending Act) by Finance Act 2021 (c. 26), Sch. 3 para. 2(4)
F8: S. 1058(2)(b) 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. 6(12)(c), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
F9: S. 1058(2)(c) 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. 6(12)(c), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2
F10: S. 1058(3) 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. 6(12)(d), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2

Modifications

C1: S. 1058(1) excluded by 2010 c. 4, s. 357PD (as inserted (with effect in accordance with s. 5 of the amending Act) by Corporation Tax (Northern Ireland) Act 2015 (c. 21), s. 1)

Notes on Part 13

Textual amendments

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

Notes on Chapter 2

Textual amendments

F1: Pt. 13 Ch. 2 heading substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 6(2), 16 (with Sch. 1 para. 18); S.I. 2024/286, reg. 2