Capital Allowances Act 2001 section 90

References to research and development in relation to new trades

Section 90 deals with a transitional rule that applies a narrower definition of research and development for trades that started in the 1999–2000 tax year where their first accounting period straddled the commencement of the Capital Allowances Act 2001.

• Applies to trades set up and commenced in the 1999–2000 tax year whose first period of account ended after 6th April 2001
• For that tax year, the broader term "research and development" used in Part 6 of the Act is read as if it said "scientific research"
• Scientific research is defined as any activities in the fields of natural or applied science for the extension of knowledge
• This is a transitional provision ensuring continuity with the narrower definition that applied under earlier legislation