Corporation Tax Act 2009 section 123

Qualifying expenditure on externally provided workers

Section 123 is a transitional provision that removes references to externally provided workers from various R&D tax relief schemes for expenditure incurred before the dates when those rules were first introduced.

• For SME R&D relief (Chapters 2 and 4 of Part 13), expenditure incurred before 27 September 2003 is treated as if the externally provided workers rules did not exist.
• For SME sub-contracted R&D relief (Chapter 3) and large company R&D relief (Chapter 5), expenditure incurred before 9 April 2003 is similarly treated without the externally provided workers provisions.
• For vaccine research relief (Chapter 7), expenditure incurred by a large company before 27 September 2003 is treated as if the externally provided workers rules did not apply.
• The definition of "large company" for vaccine research purposes follows the same meaning used throughout Part 13 of the Act.