Corporation Tax Act 2009 section 1106

Tax credit only available where company is going concern

Section 1106 establishes that a company can only claim an R&D tax credit if it is a going concern at the time of the claim.

• A company must be a going concern to be eligible for an R&D tax credit under section 1103.
• This is a precondition that must be satisfied before any tax credit can be paid out.
• The going concern requirement ensures that the R&D tax credit regime supports active, viable businesses rather than companies that have ceased or are about to cease trading.
• If a company does not meet the going concern test at the time it makes its claim, the tax credit will not be available.

---