Section 1112F — Corporation Tax Act 2009: Restriction of credit and relief to companies that are going concerns

Restriction of credit and relief to companies that are going concerns 1112F 1 Subsection (2) applies if a company makes a claim under section 1042C (claims for R&D expenditure credit) at a time when it is not a going concern.

2 No amount is to be paid to the company at step 7 in section 1042I as a result of the claim.

3 Subsection (2) ceases to apply (and the company accordingly becomes entitled to be paid) if the company becomes a going concern on or before the last day on which it would be entitled to amend the claim in accordance with paragraph 83E of Schedule 18 to FA 1998.

4 A company may not make—

a a claim under section 1044 (R&D relief by way of additional deduction),

b an election under section 1045 (R&D relief by way of deemed trading loss), or c a claim under section 1054 (R&D tax credit), at a time when it is not a going concern.

5 If a company ceases to be a going concern after making a claim under section 1054, it is treated as if it had not made the claim (and accordingly there is treated as having been no payment of R&D tax credit to carry interest under section 826 of ICTA).

6 Subsection (5) does not apply so far as the claim relates to an amount that was paid or applied before the company ceased to be a going concern.