Corporation Tax Act 2009 section 1142C

Right to payment of credit inalienable

Section 1142C prevents companies from transferring their right to receive R&D tax credit payments to another party.

• A company's right to receive an R&D expenditure credit or R&D tax credit payment cannot be assigned to any other party.
• Any attempt to assign such a right, or any agreement to do so, is automatically void and has no legal effect.
• This ensures that only the company that incurred the qualifying R&D expenditure can receive the corresponding credit payment.
• In Scotland, references to assignment are to be read as references to assignation, reflecting the different legal terminology used in Scots law.