Corporation Tax Act 2009 section 1062A

Insurance company to be treated as large company

Section 1062A prevents insurance companies carrying on life assurance business from qualifying as small or medium-sized enterprises for the purposes of the R&D expenditure rules.

• This section applies to insurance companies that carry on life assurance business.
• Such companies are automatically excluded from being treated as small or medium-sized enterprises (SMEs) for R&D purposes.
• The exclusion applies on a period-by-period basis — it is determined by reference to each accounting period in which life assurance business is carried on.
• As a result, any R&D claims by these companies must be made under the large company regime rather than the more generous SME scheme.