{
  "url": "https://openlegislation.uk/income-and-corporation-taxes-act-1988/schedule-19C/paragraph-6",
  "json_url": "https://openlegislation.uk/income-and-corporation-taxes-act-1988/schedule-19C/paragraph-6.json",
  "legislation": "ukpga/1988/1",
  "legislation_title": "Income and Corporation Taxes Act 1988",
  "legislation_url": "https://openlegislation.uk/income-and-corporation-taxes-act-1988",
  "path": "schedule/19C/paragraph/6",
  "kind": "paragraph",
  "number": "6",
  "heading": null,
  "text": "(1) For the purposes of this Schedule, expenditure is “qualifying pre-commencement expenditure” if it meets conditions A to D.\n(2) Condition A is that the expenditure is incurred on or after 1st 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 person with a view to carrying on a ring fence trade but before the person 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 paragraph, 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 (R&D tax relief for SMEs: alternative treatment of pre-trading expenditure) 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 Schedule as being equal to 150% of its actual amount.\n(8) In the case of any qualifying pre-commencement expenditure which is relevant R&D expenditure incurred by a large company, the amount of that expenditure is treated for the purposes of this Schedule as being equal to 125% of its actual amount.\n(9) For this purpose “relevant R&D expenditure incurred by a large company” means qualifying Chapter 5 expenditure as defined by section 1076 of CTA 2009 (R&D tax relief for large companies).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in Sch. 19C para. 6(6)(a) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 284(2)(a) (with Sch. 2 Pts. 1, 2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in Sch. 19C para. 6(6)(b) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 284(2)(b) (with Sch. 2 Pts. 1, 2)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in Sch. 19C para. 6(9) substituted (1.4.2009 with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 284(3) (with Sch. 2 Pts. 1, 2)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1988/1/schedule/19C/paragraph/6",
    "retrieved_at": "2026-10-29T09:49:54.309394+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."
}