Corporation Tax Act 2009 section 1179DT

Excluded expenditure: research and development and unpaid amounts

Section 1179DT identifies two categories of expenditure that are excluded from qualifying expenditure for audio-visual expenditure credit purposes: expenditure eligible for research and development tax relief, and expenditure that remains unpaid within four months after the end of the accounting period.

• Expenditure that could qualify for an R&D expenditure credit or R&D relief under existing corporation tax provisions is excluded from the audio-visual expenditure credit regime
• This prevents a production company from claiming both R&D tax relief and audio-visual expenditure credit on the same costs
• Expenditure that has not been paid within four months after the end of the relevant accounting period is also treated as excluded expenditure for that period
• The four-month payment window is measured from the first day after the final day of the accounting period in question