|
| |
|
| |
“relevant accounting period” has the meaning given by section |
| |
| |
“relevant IP profits”, in relation to a trade of a company for an |
| |
accounting period, has the same meaning in this paragraph as in Part |
| 5 |
| |
“set-off amount”, in relation to a trade of a company for an accounting |
| |
period, is to be read in accordance with Chapter 5 of that Act. |
| |
| |
| |
Relief for expenditure on R&D |
| 10 |
| |
1 | Part 13 of CTA 2009 (additional relief for expenditure on research and |
| |
development) is amended as follows. |
| |
Amount of relief for expenditure on R&D by small or medium-sized enterprises (“SMEs”) |
| |
2 (1) | Chapter 2 (relief for SMEs: cost of R&D incurred by SME) is amended as |
| 15 |
| |
(2) | In section 1044 (additional deduction in calculating profits of trade), in |
| |
subsection (8), for “100%” substitute “125%”. |
| |
(3) | In section 1045 (alternative treatment for pre-trading expenditure: deemed |
| |
trading loss), in subsection (7), for “200%” substitute “225%”. |
| 20 |
(4) | In section 1055 (tax credit: meaning of “Chapter 2 surrenderable loss”), in |
| |
subsection (2)(b), for “200%” substitute “225%”. |
| |
(5) | In section 1058 (amount of tax credit), in subsection (1)(a), for “12.5%” |
| |
| |
| 25 |
3 (1) | Chapter 2 (relief for SMEs: cost of R&D incurred by SME) is amended as |
| |
| |
(2) | In section 1043 (overview of Chapter), in subsection (3), omit paragraph (e) |
| |
(but not the “and” after it). |
| |
(3) | In section 1044 (additional deduction in calculating profits of trade), omit |
| 30 |
| |
(4) | In section 1045 (alternative treatment for pre-trading expenditure: deemed |
| |
| |
(a) | in subsection (1), omit “, B”, and |
| |
| 35 |
(5) | Omit section 1050 (R&D threshold). |
| |
4 (1) | Chapter 3 (relief for SMEs: R&D sub-contracted to SME) is amended as |
| |
| |
|
| |
|
| |
|
(2) | In section 1063 (additional deduction in calculating profits of trade)— |
| |
(a) | in subsection (1), omit “, B”, and |
| |
| |
(3) | Omit section 1064 (R&D threshold). |
| |
5 (1) | Chapter 4 (relief for SMEs: subsidised and capped expenditure on R&D) is |
| 5 |
| |
(2) | In section 1068 (additional deduction in calculating profits of trade)— |
| |
(a) | in subsection (1), omit “, B”, and |
| |
| |
(3) | Omit section 1069 (R&D threshold). |
| 10 |
6 (1) | Chapter 5 (relief for large companies) is amended as follows. |
| |
(2) | In section 1074 (additional deduction in calculating profits of trade)— |
| |
(a) | in subsection (1), omit “, B”, and |
| |
| |
(3) | Omit section 1075 (R&D threshold). |
| 15 |
7 (1) | Chapter 7 (relief for SMEs and large companies: vaccine research etc) is |
| |
| |
(2) | In section 1085 (overview of Chapter), in subsection (5), omit paragraph (c). |
| |
(3) | In section 1087 (deduction in calculating profits of trade)— |
| |
(a) | in subsection (1), omit “, B”, and |
| 20 |
| |
(4) | In section 1092 (SMEs: deemed trading loss for pre-trading expenditure), |
| |
| |
(5) | Omit section 1097 (R&D threshold). |
| |
8 | In consequence of the amendments made by paragraphs 3 to 7, in Schedule |
| 25 |
4 to CTA 2009 omit each of the entries for “R&D threshold”. |
| |
Company not a going concern when in administration or liquidation |
| |
9 | Chapter 2 (relief for SMEs: cost of R&D incurred by SME) is amended as |
| |
| |
10 (1) | Section 1046 (relief only available where company is going concern) is |
| 30 |
| |
(2) | At the end of subsection (2) insert— |
| |
| “This is subject to subsection (2A).” |
| |
(3) | After subsection (2) insert— |
| |
“(2A) | A company is not a going concern at any time if it is in administration |
| 35 |
or liquidation at that time. |
| |
(2B) | For the purposes of this section a company is in administration if— |
| |
|
| |
|
| |
|
(a) | it is in administration under Part 2 of the Insolvency Act 1986 |
| |
or Part 3 of the Insolvency (Northern Ireland) Order 1989 (S.I. |
| |
| |
(b) | a corresponding situation under the law of a country or |
| |
territory outside the United Kingdom exists in relation to the |
| 5 |
| |
(2C) | For the purposes of this section a company is in liquidation if— |
| |
(a) | it is in liquidation within the meaning of section 247 of that |
| |
Act or Article 6 of that Order, or |
| |
(b) | a corresponding situation under the law of a country or |
| 10 |
territory outside the United Kingdom exists in relation to the |
| |
| |
11 (1) | Section 1057 (tax credit only available where company is going concern) is |
| |
| |
(2) | At the end of subsection (4) insert— |
| 15 |
| “This is subject to subsection (4A).” |
| |
(3) | After subsection (4) insert— |
| |
“(4A) | A company is not a going concern at any time if it is in administration |
| |
or liquidation at that time. |
| |
(4B) | For the purposes of this section a company is in administration if— |
| 20 |
(a) | it is in administration under Part 2 of the Insolvency Act 1986 |
| |
or Part 3 of the Insolvency (Northern Ireland) Order 1989 (S.I. |
| |
| |
(b) | a corresponding situation under the law of a country or |
| |
territory outside the United Kingdom exists in relation to the |
| 25 |
| |
(4C) | For the purposes of this section a company is in liquidation if— |
| |
(a) | it is in liquidation within the meaning of section 247 of that |
| |
Act or Article 6 of that Order, or |
| |
(b) | a corresponding situation under the law of a country or |
| 30 |
territory outside the United Kingdom exists in relation to the |
| |
| |
12 | Chapter 7 (relief for SMEs and large companies: vaccine research etc) is |
| |
| |
13 (1) | Section 1094 (relief only available to SME where company is going concern) |
| 35 |
| |
(2) | At the end of subsection (2) insert— |
| |
| “This is subject to subsection (2A).” |
| |
(3) | After subsection (2) insert— |
| |
“(2A) | A company is not a going concern at any time if it is in administration |
| 40 |
or liquidation at that time. |
| |
(2B) | For the purposes of this section a company is in administration if— |
| |
(a) | it is in administration under Part 2 of the Insolvency Act 1986 |
| |
or Part 3 of the Insolvency (Northern Ireland) Order 1989 (S.I. |
| |
| 45 |
|
| |
|
| |
|
(b) | a corresponding situation under the law of a country or |
| |
territory outside the United Kingdom exists in relation to the |
| |
| |
(2C) | For the purposes of this section a company is in liquidation if— |
| |
(a) | it is in liquidation within the meaning of section 247 of that |
| 5 |
Act or Article 6 of that Order, or |
| |
(b) | a corresponding situation under the law of a country or |
| |
territory outside the United Kingdom exists in relation to the |
| |
| |
14 (1) | Section 1106 (tax credit only available where company is going concern) is |
| 10 |
| |
(2) | At the end of subsection (4) insert— |
| |
| “This is subject to subsection (4A).” |
| |
(3) | After subsection (4) insert— |
| |
“(4A) | A company is not a going concern at any time if it is in administration |
| 15 |
or liquidation at that time. |
| |
(4B) | For the purposes of this section a company is in administration if— |
| |
(a) | it is in administration under Part 2 of the Insolvency Act 1986 |
| |
or Part 3 of the Insolvency (Northern Ireland) Order 1989 (S.I. |
| |
| 20 |
(b) | a corresponding situation under the law of a country or |
| |
territory outside the United Kingdom exists in relation to the |
| |
| |
(4C) | For the purposes of this section a company is in liquidation if— |
| |
(a) | it is in liquidation within the meaning of section 247 of that |
| 25 |
Act or Article 6 of that Order, or |
| |
(b) | a corresponding situation under the law of a country or |
| |
territory outside the United Kingdom exists in relation to the |
| |
| |
Removal of limit on amount of tax credit based on PAYE and NIC liabilities |
| 30 |
15 (1) | Chapter 2 (relief for SMEs: cost of R&D incurred by SME) is amended as |
| |
| |
(2) | In section 1058 (amount of tax credit), in subsection (1), omit paragraph (b) |
| |
(and the “or” before it). |
| |
(3) | Omit section 1059 (total amount of company’s PAYE and NIC liabilities). |
| 35 |
Abolition of vaccine research relief for SMEs |
| |
16 (1) | Section 1039 (overview of Part 13) is amended as follows. |
| |
(2) | In subsection (6), for the words from “companies” to “companies)” |
| |
substitute “large companies”. |
| |
| 40 |
(a) | for “Chapters 2 and 7 also provide” substitute “Chapter 2 also |
| |
| |
|
| |
|
| |
|
(b) | in paragraph (a), omit “or 7”. |
| |
17 | In section 1042 (“relevant research and development”), in subsection (3), |
| |
| |
18 | In section 1046 (relief only available where company is going concern), in |
| |
subsection (2)(b), omit “or Chapter 7”. |
| 5 |
19 | In section 1057 (tax credit only available where company is going concern), |
| |
in subsection (4)(b), omit “or Chapter 7”. |
| |
20 | Chapter 7 (relief for SMEs and large companies: vaccine research etc) is |
| |
amended as set out in paragraphs 21 to 30. |
| |
21 (1) | Section 1085 (overview of Chapter) is amended as follows. |
| 10 |
(2) | In subsection (1), for the words from “companies” to “companies)” |
| |
substitute “large companies”. |
| |
(3) | For subsection (3) substitute— |
| |
“(3) | The relief available is a deduction under section 1087 (the amount of |
| |
which is determined under section 1091).” |
| 15 |
| |
(5) | For subsection (5) substitute— |
| |
“(5) | Sections 1098 to 1102 contain provision about when a company’s |
| |
expenditure is “qualifying Chapter 7 expenditure” for the purposes |
| |
of obtaining relief and when such expenditure is “for” an accounting |
| 20 |
| |
| |
(7) | In subsection (7), omit “or R&D tax credits”. |
| |
22 (1) | Section 1087 (deduction in calculating profits of trade) is amended as |
| |
| 25 |
(2) | In subsection (1), for “and C” substitute “, C and D”. |
| |
(3) | After subsection (4) insert— |
| |
“(4A) | Condition D is that the company is a large company throughout the |
| |
| |
(4) | For subsection (7) substitute— |
| 30 |
“(7) | For the amount of the deduction see section 1091.” |
| |
| |
(a) | in paragraph (a), omit “large”, |
| |
(b) | omit paragraph (b), and |
| |
(c) | in paragraph (d), for “sections 1099 and 1100” substitute “section |
| 35 |
| |
23 (1) | In section 1088 (large companies: declaration about effect of relief), in |
| |
subsection (1), omit “large”. |
| |
(2) | Accordingly, the heading of that section becomes “Declaration about effect |
| |
| 40 |
|
| |
|
| |
|
24 | Omit sections 1089 and 1090 (which relate only to SMEs). |
| |
25 (1) | In section 1091 (large companies: amount of deduction), in subsection (1), |
| |
omit paragraph (b) (and the “and” before it). |
| |
(2) | Accordingly, the heading of that section becomes “Amount of deduction”. |
| |
26 | Omit sections 1092 to 1096 and 1099 (which relate only to SMEs). |
| 5 |
27 (1) | In section 1100 (large companies: qualifying expenditure “for” an accounting |
| |
period), for subsection (1) substitute— |
| |
“(1) | A company’s qualifying Chapter 7 expenditure is “for” an |
| |
accounting period if it is allowable as a deduction in calculating for |
| |
corporation tax purposes the profits for the period of a trade carried |
| 10 |
| |
(2) | Accordingly, the heading of that section becomes “Qualifying expenditure |
| |
“for” an accounting period”. |
| |
28 | Omit sections 1103 to 1111 (tax credits). |
| |
29 (1) | Section 1112 (artificially inflated claims for relief or tax credit) is amended as |
| 15 |
| |
(2) | In subsection (1), for “the purposes mentioned in subsection (2)” substitute |
| |
“the purpose of determining for an accounting period relief to which a |
| |
company is entitled under this Chapter”. |
| |
| 20 |
| |
(a) | at the end of paragraph (a) insert “or”, and |
| |
(b) | omit paragraphs (c) and (d). |
| |
(5) | Accordingly, the heading of that section becomes “Artificially inflated |
| |
| 25 |
30 | The heading of Chapter 7 becomes “Relief for large companies: vaccine |
| |
| |
31 (1) | Chapter 8 (cap on aid for R&D) is amended as follows. |
| |
(2) | In section 1113 (cap on R&D aid under Chapter 2 or 7), in subsection (4)(b), |
| |
| 30 |
(3) | In section 1115 (“the tax credits”), in subsection (1), omit “or 7”. |
| |
32 | In consequence of the amendments made by paragraphs 16 to 31— |
| |
(a) | in Schedule 4 to CTA 2009 (index of defined expressions), omit the |
| |
entry for “Chapter 7 surrenderable loss”, |
| |
(b) | in Schedule 1 to CTA 2010, omit paragraphs 672 to 674, and |
| 35 |
(c) | in section 43 of FA 2011, omit subsections (7) to (11). |
| |
Qualifying expenditure on externally provided workers |
| |
33 | Chapter 9 (supplementary) is amended as follows. |
| |
34 (1) | Section 1128 (“externally provided worker”) is amended as follows. |
| |
|
| |
|
| |
|
(2) | In subsection (7), for “the staff provider” substitute “a person other than the |
| |
company (the “staff controller”)”. |
| |
(3) | After subsection (8) insert— |
| |
“(9) | In sections 1129 to 1131 references to “staff controller” are to be read |
| |
in accordance with subsection (7).” |
| 5 |
35 (1) | Section 1129 (connected persons) is amended as follows. |
| |
(2) | In subsection (1), for paragraphs (b) and (c) substitute— |
| |
“(b) | the company, the staff provider and (if different) the staff |
| |
controller (or staff controllers) are all connected, and |
| |
(c) | in accordance with generally accepted accounting practice— |
| 10 |
(i) | the whole of the staff provision payment has been |
| |
brought into account in determining the staff |
| |
provider’s profit or loss for a relevant period, and |
| |
(ii) | all of the relevant expenditure of each staff controller |
| |
has been brought into account in determining the |
| 15 |
staff controller’s profit or loss for a relevant period.” |
| |
(3) | In subsection (2)(b), for “the staff provider’s relevant expenditure” |
| |
substitute “the aggregate of the relevant expenditure of each staff |
| |
| |
| 20 |
(a) | for “of the staff provider” substitute “, in relation to a staff |
| |
| |
(b) | in paragraph (a), for “staff provider” substitute “staff controller”. |
| |
| |
(a) | after ““Relevant period”” insert “, in relation to a person,”, and |
| 25 |
(b) | in paragraph (a), for “staff provider” substitute “person”. |
| |
| |
(a) | for “the staff provider’s expenditure” substitute “the expenditure of |
| |
| |
(b) | for “the staff provider” substitute “a staff controller”. |
| 30 |
(7) | In subsection (7), for “staff provider” substitute “a staff controller”. |
| |
36 (1) | Section 1130 (election for connected persons treatment) is amended as |
| |
| |
(2) | For subsection (1) substitute— |
| |
| 35 |
(a) | a company makes a staff provision payment, and |
| |
(b) | the company, the staff provider and (if different) the staff |
| |
controller (or staff controllers) are not all connected, |
| |
| they may jointly elect that section 1129 is to apply to them as if they |
| |
| 40 |
(3) | In subsection (2), for “must be made” substitute “has effect”. |
| |
37 | In section 1131 (qualifying expenditure on externally provided workers: |
| |
other cases), in subsection (1), for paragraph (b) (but not the “and” following |
| |
|
| |
|