Corporation Tax Act 2009 section 1112F

Restriction of credit and relief to companies that are going concerns

Section 1112F restricts the availability of R&D tax credits and reliefs to companies that are not going concerns, preventing cash payments and certain claims from being made while a company is in that position.

• If a company claims R&D expenditure credit while it is not a going concern, no cash payment will be made to it under the payment step of the credit calculation.
• The restriction on payment is lifted if the company becomes a going concern again before the deadline for amending the claim expires.
• A company that is not a going concern is prohibited from claiming R&D relief by way of additional deduction, deemed trading loss, or R&D tax credit.
• If a company ceases to be a going concern after making an R&D tax credit claim, the claim is treated as never having been made, except to the extent amounts were already paid or applied before it ceased to be a going concern.