Section 1042B — Corporation Tax Act 2009: Entitlement to credit

Entitlement to credit 1042B 1 A company is entitled to an R&D expenditure credit for an accounting period if it meets conditions A, B and C in this section.

2 Condition A is that the company carries on a trade in the period.

3 Condition B is that the company incurs expenditure that is both—

a allowable as a deduction in calculating for corporation tax purposes the profits of the trade for the period, and b qualifying Chapter 1A expenditure by virtue of section 1042D , 1042E or 1042F .

4 Condition C is that the company is not an ineligible company (see section 1142).

5 The amount of the credit is the relevant percentage (see section 1042G ) of the expenditure that satisfies condition B.