Corporation Tax Act 2009 section 116

Cap on R&D aid under Chapter 2 or 7 of Part 13

Section 116 establishes a cut-off date for the calculation of the cap on research and development state aid, ensuring that R&D relief relating to expenditure before 1 August 2008 is excluded from the cap calculation.

• When calculating total R&D aid for the purposes of the state aid cap, certain historic expenditure is disregarded.
• Any qualifying R&D relief connected to expenditure incurred before 1 August 2008 is excluded from the calculation.
• This means the cap on R&D aid only applies to relief arising from expenditure on or after 1 August 2008.
• The provision acts as a transitional rule, preventing pre-existing relief from counting towards the aid ceiling.