Corporation Tax Act 2009 section 1112A

Overview of Chapter

Section 1112A provides an overview of Chapter 8, which sets out the various restrictions and caps that limit a company's entitlement to R&D expenditure credits and R&D tax credits.

• The amount of R&D credit payable to a company may be capped by reference to its PAYE and national insurance liabilities, with certain exceptions
• Payment of R&D expenditure credits and relief under Chapter 2 is only available to companies that are going concerns
• R&D credits do not have to be paid if tax enquiries are open or if the company has outstanding PAYE or national insurance liabilities
• Transactions designed to artificially obtain or increase R&D relief entitlements will be disregarded