Corporation Tax Act 2009 section 1139A

Expenditure incurred on payments

Section 1139A clarifies that, for the purposes of the R&D expenditure credit regime, expenditure on payments only counts if the payments were actually made before the company submits its claim.

• This section defines what "expenditure incurred on payments" means within the R&D expenditure credit provisions.
• Only payments that have actually been made before the date the claim is submitted qualify as eligible expenditure.
• This prevents companies from claiming R&D tax relief on amounts that have been accrued or committed but not yet physically paid out.
• The rule applies regardless of how the reference to expenditure on payments is expressed elsewhere in this Part of the Act.