Corporation Tax Act 2009 section 1100

Qualifying expenditure "for" an accounting period

Section 1100 explains how qualifying research and development expenditure is allocated to accounting periods for large companies claiming R&D tax relief.

• Qualifying expenditure is allocated to the accounting period in which it is deductible when calculating trade profits
• This applies to both in-house direct R&D and contracted-out R&D expenditure
• Unlike small or medium-sized enterprises, the normal pre-trading expenditure rules apply to large companies
• Any pre-trading R&D expenditure is treated as incurred on the day the company starts trading