Corporation Tax Act 2009 section 1042H

Expenditure credit to count as taxable receipt

Section 1042H requires companies that claim an R&D expenditure credit to treat it as taxable income of the relevant trade.

• When a company is entitled to and claims an R&D expenditure credit, the credit must be included in the company's taxable trading profits.
• The credit is brought into account as a trading receipt for corporation tax purposes.
• The credit relates to the same accounting period for which it is claimed.
• The receipt is attributed to the trade in connection with which the R&D expenditure was incurred.