Legislation – Finance Act 2024
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Schedule 1Research and development
Part 1Main amendments of CTA 2009
4
(1)
Chapter 1 of Part 13 is amended as follows.
(2)
“1039Overview of Part
(1)
This Part provides relief for companies that invest in research and development.
(2)
Chapter 1A makes relief available in the form of a credit in respect of expenditure on research and development, which becomes payable in certain circumstances.
(3)
Chapter 2 makes alternative relief available, in the form of—
(a)
an additional deduction in calculating trading profits, and
(b)
a payable credit,
to small or medium-sized enterprises that invest heavily in research and development and do not make associated trading profits.
(4)
Chapter 8 limits the reliefs provided by Chapters 1A and 2.
(5)
Chapter 9 contains definitions and other supplementary provision.”
(3)
“1040No overlapping claims under Chapters 1A and 2
A company is not entitled to relief under Chapter 2 in respect of expenditure if it is entitled to, and claims, relief under Chapter 1A in respect of that expenditure.”
(4)
Omit section 1040A (which refers to the existing R&D expenditure credit).