What is the claim notification requirement under Corporation Tax Act 2009 section 1054A?

From 1 April 2023, companies wishing to claim R&D tax credits under the merged scheme must notify HMRC of their intention to claim within the claim notification period. Failure to notify within this period generally bars the company from making an R&D tax credit claim for that accounting period.

What exceptions allow an R&D tax credit claim without a claim notification under section 1054A?

A company may still claim if it made an R&D claim within the three years ending with the last day of the claim notification period, establishing a claims history. A claim is also permitted where the accounting period falls within the same period of account as another period for which an R&D claim or notification already exists.

How does the transitional rule for pre-April 2023 claims work under section 1054A?

When assessing whether a company has a prior R&D claims history, any claim for an accounting period beginning before 1 April 2023 is disregarded if it was added to the company tax return solely by amendment on or after 1 April 2023. This prevents companies from retrospectively creating a claims history by amending old returns.

What happens if a company fails to submit a claim notification within the required period?

If a company without an existing R&D claims history fails to submit a claim notification to HMRC within the claim notification period, it will be unable to make the R&D tax credit claim for that accounting period, regardless of the merits of its underlying qualifying R&D expenditure.

Corporation Tax Act 2009 section 1054A

Requirement to make a claim notification

Section 1054A requires companies to notify HMRC of their intention to make an R&D tax credit claim within a specified claim notification period, and sets out the limited circumstances in which a claim may still be made after that period has ended.

A company cannot make an R&D tax credit claim after the claim notification period unless one of three conditions is met
The company may claim if it has made an R&D claim within the three years ending with the last day of the claim notification period, or if it submits a claim notification within that period
A claim is also permitted where the relevant accounting period falls within the same period of account as another accounting period for which the company has already made an R&D claim or claim notification
R&D claims for accounting periods beginning before 1 April 2023 that were added to a company tax return only by amendment on or after that date are ignored when assessing whether a prior claim exists

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