Corporation Tax Act 2009 section 124

Qualifying expenditure on relevant payments to subjects of clinical trials

Section 124 provides transitional rules that remove references to clinical trial payments from various R&D tax relief chapters for expenditure incurred before certain dates.

• For SME R&D relief where the SME bears the cost (Chapter 2) and where R&D is sub-contracted to an SME (Chapter 3), expenditure incurred before 1 August 2008 is treated without the provisions relating to relevant payments to clinical trial subjects.
• For SME subsidised R&D expenditure relief (Chapter 4) and large company R&D relief (Chapter 5), expenditure incurred before 1 April 2006 is treated without the clinical trial payment provisions.
• For vaccine research relief available to both SMEs and large companies (Chapter 7), expenditure incurred before 1 August 2008 is treated without the clinical trial payment provisions.
• In each case, the definition of relevant payments to clinical trial subjects and related qualifying expenditure references are disregarded for the applicable earlier periods.