Corporation Tax Act 2009 section 104U

Insurance companies treated as large companies

Section 104U ensures that insurance companies carrying on life assurance business are always treated as large companies for the purposes of the research and development expenditure credit rules, even if they would otherwise qualify as small or medium-sized enterprises.

• This section applies to insurance companies that carry on life assurance business
• If such a company would normally be classified as a small or medium-sized enterprise (SME) in an accounting period, it is instead treated as a large company
• The reclassification applies specifically for the purposes of the R&D expenditure credit rules in Chapter 6A
• This section overrides the general definition of a small or medium-sized enterprise found elsewhere in the Corporation Tax Act 2009