Corporation Tax Act 2009 section 1080

Entitlement to relief: I minus E basis

Section 1080 explains how a claim for research and development (R&D) tax relief is given effect for a company carrying on life assurance business taxed on the "I minus E" basis.

• Life assurance companies taxed on the "I minus E" basis may claim R&D relief in a specific way that reflects their unique tax computation method.
• The "I minus E" basis calculates taxable profits as investment income (I) minus allowable expenses (E), rather than using a standard trading profit computation.
• R&D relief for these companies is applied within this I minus E framework, ensuring the relief integrates properly with their particular basis of taxation.
• The provision originated from paragraph 13 of Schedule 12 to the Finance Act 2002 and was subsequently amended by the Finance Act 2013.