Corporation Tax Act 2009 section 1070

Qualifying Chapter 4 expenditure

Section 1070 identifies the two categories of expenditure that qualify for relief under Chapter 4, setting out the qualifying conditions in full rather than requiring cross-referencing to other legislation.

• There are two distinct categories of expenditure that can qualify for relief under Chapter 4.
• The qualifying conditions are stated directly within this chapter, avoiding the need to cross-refer to and modify conditions found in earlier legislation.
• Unlike the previous source legislation, there is no requirement that the expenditure must be unsubsidised in order to qualify.
• The approach simplifies what was previously a layered set of rules requiring the reader to combine and adjust conditions from multiple legislative sources.