Corporation Tax Act 2009 section 104B

Restriction on claiming relief under Part 13 and credit for same expenditure

Section 104B prevents a company from claiming both an R&D expenditure credit and additional R&D relief under Part 13 of the Corporation Tax Act 2009 for the same item of expenditure.

• A company carrying out qualifying R&D activities may be eligible for more than one form of tax relief on its research and development spending.
• Chapter 6A provides for an R&D expenditure credit (RDEC), which is an above-the-line credit calculated as a percentage of qualifying R&D expenditure.
• Part 13 provides a separate regime of additional R&D relief, typically available to small and medium-sized enterprises, which allows an enhanced deduction for qualifying expenditure.
• Section 104B ensures that a company cannot claim under both regimes in respect of the same expenditure — it must use one route or the other for any given item of qualifying spend.