Corporation Tax Act 2009 section 104X

Artificially inflated claims for credit

Section 104X is an anti-avoidance provision that prevents companies from artificially inflating their claims for R&D expenditure credits.

• This is an anti-avoidance rule targeting artificially inflated R&D expenditure credit claims
• Any transaction entered into mainly to obtain an R&D tax credit a company would not otherwise qualify for is disregarded
• Any transaction entered into mainly to secure a larger credit than the company would normally be entitled to is also disregarded
• The disregard applies when calculating R&D expenditure credits under the relevant chapter of the Corporation Tax Act 2009