Corporation Tax Bill
xlviii
1000
Deduction for costs of setting up employee share ownership trust
Part 12
Other relief for employee share acquisitions
Chapter 1
Introduction
Introductory
1001
Overview of Part
Interpretation
1002
“Employment”
1003
“Shares” etc
1004
Groups, consortiums and commercial associations of companies
1005
Other definitions
Chapter 2
Relief if shares acquired by employee or other person
1006
Overview of Chapter
Requirements to be met for relief to be available
1007
Basic requirements for relief under Chapter 2
1008
Conditions relating to shares acquired
1009
Conditions relating to employee’s income tax position
Calculation of amount of relief
1010
Calculation of relief if shares are neither restricted nor convertible
1011
Calculation of relief if shares are restricted or convertible
1012
Reduction in amount of relief
Giving of relief
1013
How the relief is given
Chapter 3
Relief if employee or other person obtains option to acquire shares
1014
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1015
Basic requirements for relief under Chapter 3
1016
1017
Condition relating to employee’s income tax position
1018
1019
1020
1021
Takeovers and transfers of businesses
1022
Takeover of company whose shares are subject to option
1023
Supplementary provision for purposes of section 1022
1024
Transfer of qualifying business by group transfers
Chapter 4
Additional relief in cases involving restricted shares
1025
Additional relief available if shares acquired are restricted shares
1026
Relief available on occurrence of chargeable event
1027
Relief available on death of employee
1028
Supplementary provision for purposes of sections 1026 and 1027
1029
Chapter 5
Additional relief in cases involving convertible securities
1030
Application of Chapter
1031
Additional relief available if shares acquired are convertible shares etc
1032
Meaning of “chargeable event”
1033
1034
Relief available following death of employee
1035
Supplementary provision for purposes of sections 1033 and 1034
1036
Chapter 6
Relationship between relief under this Part and other reliefs
1037
Priority of Chapter 1 of Part 11
1038
Exclusion of other deductions
l
Part 13
Additional relief for expenditure on research and development
1039
1040
Relief may be available under more than one Chapter of Part
1041
“Research and development”
1042
“Relevant research and development”
Relief for SMEs: cost of R&D incurred by SME
1043
Reliefs
1044
Additional deduction in calculating profits of trade
1045
Alternative treatment for pre-trading expenditure: deemed trading loss
Reliefs: further provision
1046
Relief only available where company is going concern
1047
Elections under section 1045
1048
Treatment of deemed trading loss under section 1045
1049
Restriction on consortium relief
Threshold
1050
R&D threshold
Qualifying expenditure
1051
Qualifying Chapter 2 expenditure
1052
Qualifying expenditure on in-house direct R&D
1053
Qualifying expenditure on contracted out R&D
Tax credit: entitlement and payment
1054
Entitlement to and payment of tax credit
1055
Meaning of “Chapter 2 surrenderable loss”
1056
Amount of trading loss which is “unrelieved”
1057
Tax credit only available where company is going concern
li
Amount of tax credit
1058
1059
Total amount of company’s PAYE and NIC liabilities
Supplementary
1060
Payment of tax credit
1061
Tax credit payment not income of company
1062
Restriction on losses carried forward where tax credit claimed
Relief for SMEs: R&D sub-contracted to SME
Relief
1063
1064
1065
Qualifying Chapter 3 expenditure
1066
Expenditure on sub-contracted R&D undertaken in-house
1067
Expenditure on sub-contracted R&D not undertaken in-house
Relief for SMEs: subsidised and capped expenditure on R&D
1068
1069
1070
Qualifying Chapter 4 expenditure
1071
Subsidised qualifying expenditure on in-house direct R&D
1072
Subsidised qualifying expenditure on contracted out R&D
1073
Capped R&D expenditure
Relief for large companies
1074
lii
1075
1076
Qualifying Chapter 5 expenditure
1077
1078
1079
Qualifying expenditure on contributions to independent R&D
Insurance companies
1080
Entitlement to relief: I minus E basis
Chapters 2 to 5: further provision
1081
Insurance companies treated as large companies
1082
R&D expenditure of group companies
1083
Refunds of expenditure treated as income chargeable to tax
1084
Artificially inflated claims for relief or tax credit
Chapter 7
Relief for SMEs and large companies: vaccine research etc
1085
1086
Meaning of “qualifying R&D activity”
1087
Deduction in calculating profits of trade
1088
Large companies: declaration about effect of relief
1089
SMEs: amount of deduction
1090
Modification of section 1089 for larger SMEs
1091
Large companies: amount of deduction
1092
SMEs: deemed trading loss for pre-trading expenditure
1093
Modification of section 1092 for larger SMEs
1094
Relief only available to SME where company is going concern
Deemed trading loss: further provision
1095
Elections under section 1092
1096
Treatment of deemed trading loss under section 1092
1097
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1098
Meaning of “qualifying Chapter 7 expenditure”
1099
SMEs: qualifying expenditure “for” an accounting period
1100
Large companies: qualifying expenditure “for” an accounting period
1101
1102
1103
1104
Meaning of “Chapter 7 surrenderable loss”
1105
1106
1107
1108
1109
1110
1111
Tax avoidance
1112
Chapter 8
Cap on aid for R&D
1113
Cap on R&D aid under Chapter 2 or 7
1114
Total R&D aid
1115
“The tax credits”
1116
“The actual reduction in tax liability”
1117
“The potential relief”
1118
“The notional relief”
Chapter 9
SMEs and large companies
1119
“Small or medium-sized enterprise”
1120
Qualifications to section 1119
1121
“Larger SME”
1122
“Large company”
Staffing costs
1123
“Staffing costs”
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1124
Staffing costs: attributable expenditure
Software or consumable items
1125
“Software or consumable items”
1126
Software or consumable items: attributable expenditure
Qualifying expenditure on externally provided workers
1127
“Qualifying expenditure on externally provided workers”
1128
“Externally provided worker”
1129
Qualifying expenditure on externally provided workers: connected persons
1130
Election for connected persons treatment
1131
Qualifying expenditure on externally provided workers: other cases
1132
External workers: attributable expenditure
Sub-contractor payments
1133
“Sub-contractor” and “sub-contractor payment”
1134
Qualifying element of sub-contractor payment: connected persons
1135
1136
Qualifying element of sub-contractor payment: other cases
Miscellaneous
1137
Accounting periods: company not within charge to corporation tax
1138
“Subsidised expenditure”
1139
“Intellectual property”
1140
“Relevant payments to the subjects of a clinical trial”
1141
“Payment period”
1142
“Qualifying body”
Part 14
Remediation of contaminated land
1143
Basic definitions
1144
“Qualifying land remediation expenditure”
1145
Land “in a contaminated state”
1146
“Relevant land remediation”