Corporation Tax Act 2009 section 1110

Tax credit payment not income of company

Section 1110 confirms that a payment received by a company as an R&D tax credit is not treated as taxable income of that company.

• When a company claims and receives an R&D tax credit payment from HMRC, that payment is not treated as income for corporation tax purposes.
• This means the tax credit itself does not create an additional tax liability for the company receiving it.
• The provision ensures that the benefit of the R&D tax credit is not reduced or offset by being brought into charge to tax as income.
• This rule applies to all R&D tax credit payments made to qualifying companies under the relevant provisions of the Corporation Tax Act 2009.