Corporation Tax Act 2009 section 1135

Chapter 7 of Part 13: qualifying expenditure on contracted out R&D

Section 1135 provides a transitional relaxation of the time limit for electing connected persons treatment in relation to sub-contractor payments for contracted out research and development, where the sub-contractor is a charity, university or scientific research organisation.

• Section 1135(4) normally imposes a time limit on notices of election for connected persons treatment in relation to sub-contractor payments.
• This time limit is disapplied where a company has qualifying expenditure on contracted out research and development and the sub-contractor is a charity, a university, or a scientific research organisation.
• A sub-contractor payment is a payment made by the company to the sub-contractor in connection with contracted out R&D work, as defined in Part 13 of the Act.
• This relaxation only applies to notices of election given before 1 August 2009, making it a transitional provision.