Corporation Tax Act 2009 section 88

Payments to research associations, universities etc.

Section 88 provides a tax deduction for payments made by a trading company to approved research associations, universities, and similar institutions for scientific research related to its class of trade.

• Companies can deduct payments made to exempt scientific research associations or approved universities and research institutions, provided the research relates to their class of trade
• The deduction is claimed in the accounting period in which the payment is actually made, and the same payment cannot be claimed against more than one trade
• Scientific research covers any activities in natural or applied science aimed at extending knowledge, including research that could expand the relevant trade or improve the medical welfare of workers in that trade
• If there is any dispute about whether an activity qualifies as scientific research, an officer of Revenue and Customs must refer the question to the Secretary of State, whose decision is final