Corporation Tax Act 2009 section 104A

R&D expenditure credits

Section 104A explains how companies can obtain an R&D expenditure credit for qualifying research and development spending, and directs readers to the relevant definitions, claim requirements, and credit calculation provisions.

• A company may claim an R&D expenditure credit where it incurs qualifying R&D expenditure that is allowable as a deduction in calculating its profits for corporation tax purposes.
• For small and medium-sized companies, qualifying expenditure includes sub-contracted R&D, subsidised qualifying expenditure, and capped R&D expenditure.
• For large companies, qualifying expenditure includes in-house direct R&D, contracted-out R&D, and contributions to independent R&D.
• The amount of the credit is calculated in accordance with section 104M, and companies must comply with the claim notification requirement set out in section 104AA.