Section 1112B — Corporation Tax Act 2009: Cap by reference to PAYE and NIC liabilities

Cap by reference to PAYE and NIC liabilities 1112B 1 This section determines, for the purposes of sections 1042I and 1058(1), the amount of the cap by reference to a company’s PAYE and NIC liabilities for an accounting period. But see section 1112E (which provides for there to be no cap in certain cases).

2 The amount of the cap is the sum of—

a £20,000, and b the amount produced by multiplying by three (“the multiplier”) the amount of the company’s relevant PAYE and NIC liabilities for payment periods ending in the accounting period (see section 1112C ).

3 If the accounting period is less than 12 months, the amount specified in subsection (2) (a) is to be proportionately reduced.

4 If the company claims relief under both Chapters 1A and 2 for the period, the amount of the cap for the purposes of section 1042I is to be reduced by the amount of any R&D tax credit obtained by the company under Chapter 2.

5 The Treasury may by regulations—

a replace the amount for the time being specified in subsection (2) (a) with a different amount;

b replace the multiplier for the time being specified in subsection (2) (b) with a different multiplier.