Corporation Tax Act 2009 section 1179FL

Excluded expenditure: research and development and unpaid amounts

Section 1179FL identifies two categories of expenditure that are excluded from qualifying as audio-visual or video game expenditure credit costs: amounts eligible for research and development tax relief, and amounts that remain unpaid within four months after the end of the relevant accounting period.

• Expenditure that could qualify for an R&D expenditure credit under the merged R&D scheme (Chapter 6A of Part 3) is excluded from the creative industry reliefs
• Expenditure that could qualify for relief under Part 13 (additional relief for R&D expenditure) is similarly excluded
• Expenditure that remains unpaid more than four months after the end of the accounting period in which it arises is also excluded
• These exclusions prevent double relief and ensure only genuinely settled costs are brought into the expenditure credit calculations

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