Section 1043 — Corporation Tax Act 2009: Overview of Chapter

Overview of Chapter 1043 1 This Chapter provides relief for companies that are small or medium-sized enterprises, invest heavily in research and development, and do not make associated trading profits.

2 Section 1044 provides relief in the form of an additional deduction where the investment is made in the course of a loss-making trade.

3 Section 1045 provides relief in the form of a deemed trading loss where the investment is made the course of activities that do not yet amount to the carrying on of a trade.

4 Section 1045ZA specifies the intensity of spending on research and development needed for a company to qualify for relief under section 1044 or 1045.

5 Sections 1047 and 1048 make provision about the procedure for claiming, and the effect of, relief under section 1045.

6 Section 1049 restricts consortium relief where relief under section 1044 or 1045 is claimed.

7 Sections 1051 to 1053 describe the expenditure by reference to which the entitlement to relief under section 1044 or 1045 arises.

8 Sections 1054 to 1062 provide further relief in the form of a payable credit (called an “R&D tax credit”) in respect of trading losses increased or generated by relief under section 1044 or 1045.

9 Section 1062A excludes certain insurance companies.

10 This Chapter has to be read with Chapter 8, which limits the entitlements given by this Chapter in various respects.