Corporation Tax Act 2009 section 1112G

Meaning of "going concern"

Section 1112G defines what it means for a company to be a "going concern" for the purposes of restricting R&D tax credits and relief to viable businesses.

• A company qualifies as a going concern if its latest published accounts were prepared on a going concern basis, and not solely because of an expected R&D tax credit or relief
• A company in administration or liquidation — whether under UK insolvency law or an equivalent regime overseas — is automatically excluded from being a going concern
• Where a company transfers its trade and R&D activities to another company within the same group, and this transfer is the only reason its accounts were not prepared on a going concern basis, the accounts are treated as if they were prepared on that basis
• The definition of "publication" of accounts follows the meaning given in section 436(2) of the Companies Act 2006