{
  "url": "https://openlegislation.uk/corporation-tax-act-2010/section-312",
  "json_url": "https://openlegislation.uk/corporation-tax-act-2010/section-312.json",
  "legislation": "ukpga/2010/4",
  "legislation_title": "Corporation Tax Act 2010",
  "legislation_url": "https://openlegislation.uk/corporation-tax-act-2010",
  "path": "section/312",
  "kind": "section",
  "number": "312",
  "heading": "Qualifying pre-commencement expenditure",
  "text": "(1) For the purposes of this Chapter, expenditure is “qualifying pre-commencement expenditure” if it meets each of conditions A to D.\n(2) Condition A is that the expenditure is incurred on or after 1 January 2006.\n(3) Condition B is that the expenditure is incurred in the course of oil extraction activities.\n(4) Condition C is that the expenditure is incurred by a company with a view to carrying on a ring fence trade but before the company sets up and commences the ring fence trade.\n(5) Condition D is that the expenditure—\n(a) is subsequently allowable as a deduction in calculating the profits of the ring fence trade for the commencement period (whether or not any part of it is so allowable for any post-commencement period), or\n(b) is relevant R&D expenditure incurred by an SME.\n(6) For the purposes of this section, expenditure incurred by a company is “relevant R&D expenditure incurred by an SME” if—\n(a) the company makes an election under section 1045 of CTA 2009 (alternative treatment for pre-trading expenditure: deemed trading loss) in respect of that expenditure, but\n(b) the company does not make a claim for an R&D tax credit under section 1054 of that Act in respect of that expenditure.\n(7) In the case of any qualifying pre-commencement expenditure which is relevant R&D expenditure incurred by an SME, the amount of that expenditure is treated for the purposes of this Chapter as being equal to 150% of its actual amount.\n(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "S. 312(8)(9) omitted (with effect in accordance with Sch. 15 paras. 28, 29 of the amending Act) by virtue of Finance Act 2013 (c. 29), Sch. 15 para. 24(2)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2010/4/section/312",
    "retrieved_at": "2026-10-29T09:10:29.433154+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}