Corporation Tax Act 2009 section 1042A

Overview of Chapter

Section 1042A provides an overview of the R&D expenditure credit regime, which entitles companies to a credit for certain qualifying research and development expenditure.

• The chapter establishes an entitlement to a credit known as the "R&D expenditure credit" for qualifying research and development spending
• Key provisions cover entitlement and claims, the types of qualifying expenditure, and the percentage rate used to calculate the credit
• Further rules govern how the credit is treated once obtained, including how it is accounted for, applied against tax liabilities, or paid out — as well as provisions for surrendering amounts to other group companies
• Special rules apply to insurance companies carrying on basic life assurance and general annuity business, and the chapter must be read alongside Chapter 8, which imposes various limitations on the entitlement