Clause 1100: Large companies: qualifying expenditure “for” an accounting period     80

Clause 1101: Qualifying expenditure on in-house direct R&D     80

Clause 1102: Qualifying expenditure on contracted out R&D     81

Clause 1103: Entitlement to and payment of tax credit     81

Clause 1104: Meaning of “Chapter 7 surrenderable loss”     81

Clause 1105: Amount of trading loss which is “unrelieved”     82

Clause 1106: Tax credit only available where company is going concern     82

Clause 1107: Amount of tax credit     82

Clause 1108: Total amount of company’s PAYE and NIC liabilities     82

Clause 1109: Payment of tax credit     82

Clause 1110: Tax credit payment not income of company     82

Clause 1111: Restriction on losses carried forward where tax credit claimed     82

Clause 1112: Artificially inflated claims for relief or tax credit     82

Chapter 8: Cap on aid for R&D     82

Clause 1113: Cap on R&D aid under Chapter 2 or 7     83

Clause 1114: Total R&D aid     83

Clause 1115: “The tax credits”     83

Clause 1116: “The actual reduction in tax liability”     83

Clause 1117: “The potential relief”     83

Clause 1118: “The notional relief”     83

Chapter 9: Supplementary     83

Clause 1119: “Small or medium-sized enterprise”     83

Clause 1120: Qualifications to section 1119     84

Clause 1121: “Larger SME”     84

Clause 1122: “Large company”     84

Clause 1123: “Staffing costs”     84

Clause 1124: Staffing costs: attributable expenditure     85

Clause 1125: “Software or consumable items”     86

Clause 1126: Software or consumable items: attributable expenditure     86

Clause 1127: “Qualifying expenditure on externally provided workers”     86

Clause 1128: “Externally provided worker”     86

Clause 1129: Qualifying expenditure on externally provided workers: connected persons     86

Clause 1130: Election for connected persons treatment     87

Clause 1131: Qualifying expenditure on externally provided workers: other cases     87

Clause 1132: External workers: attributable expenditure     87

Clause 1133: “Sub-contractor” and “sub-contractor payment”     87

Clause 1134: Qualifying element of sub-contractor payment: connected persons     88

Clause 1135: Election for connected persons treatment     88

Clause 1136: Qualifying element of sub-contractor payment: other cases     88

Clause 1137: Accounting periods: company not within charge to corporation tax     88

Clause 1138: “Subsidised expenditure”     89

Clause 1139: “Intellectual property”     89

Clause 1140: “Relevant payments to the subjects of a clinical trial”     89

Clause 1141: “Payment period”     89

Clause 1142: “Qualifying body”     89

Part 14: Remediation of contaminated land     89

Chapter 1: Introduction     89

Clause 1143: Overview of Part     89

Clause 1144: “Qualifying land remediation expenditure”     90

Clause 1145: Land “in a contaminated state”     90

Clause 1146: “Relevant land remediation”     90

Chapter 2: Reliefs for expenditure on contaminated land     90

Clause 1147: Deduction for capital expenditure     90

Clause 1148: Election under section 1147     91

Clause 1149: Additional deduction for qualifying land remediation expenditure     91

Clause 1150: No relief if company responsible for contamination     91

Chapter 3: Land remediation tax credit     91

Clause 1151: Entitlement to and payment of tax credit     91

Clause 1152: Meaning of “qualifying land remediation loss”     91

Clause 1153: Amount of a loss which is “unrelieved”     91

Clause 1154: Amount of tax credit     92

Clause 1155: Payment of tax credit     92

Clause 1156: Tax credit payment not income of company     92

Clause 1157: Exclusion for capital gains purposes of certain expenditure     92

Clause 1158: Restriction on losses carried forward where tax credit claimed     92

Chapter 4: Special provision for life assurance business     92

Clause 1159: Limitation on relief under Chapter 2     92

Clause 1160: Provision in respect of I minus E basis     93

Clause 1161: Relief in respect of I minus E basis: enhanced expenses payable     93

Clause 1162: Meaning of “qualifying Chapter 4 expenditure”     93

Clause 1163: No relief if company responsible for contamination     93

Clause 1164: Entitlement to tax credit     93

Clause 1165: Meaning of “qualifying life assurance business loss”     93

Clause 1166: Amount of tax credit     93

Clause 1167: Payment of tax credit etc     94

Clause 1168: Restriction on carrying forward expenses payable where tax credit claimed     94

Chapter 5: Tax avoidance     94

Clause 1169: Artificially inflated claims for relief or tax credit     94

Chapter 6: Supplementary     94

Clause 1170: “Staffing costs”     94

Clause 1171: Staffing costs attributable to relevant land remediation     95

Clause 1172: Expenditure on materials     95

Clause 1173: Expenditure incurred because of contamination     95

Clause 1174: Sub-contractor payments     95

Clause 1175: “Qualifying expenditure on sub-contracted land remediation”: connected persons     95

Clause 1176: “Qualifying expenditure on sub-contracted land remediation”: other cases     95

Clause 1177: “Subsidised expenditure”     95

Clause 1178: Persons having a “relevant connection” to a company     96

Clause 1179: Other definitions     96

Part 15: Film production     96

Chapter 1: Introduction     96

Clause 1180: Overview of Part     96

Clause 1181: “Film” etc     96

Clause 1182: “Film production company”     97

Clause 1183: “Film-making activities” etc     97

Clause 1184: “Production expenditure”, “core expenditure” and “limited-budget film”     97

Clause 1185: “UK expenditure” etc     97

Clause 1186: “Qualifying co-production” and “co-producer”     98

Clause 1187: “Company tax return”     98

Chapter 2: Taxation of activities of film production company     98

Clause 1188: Activities of film production company treated as a separate trade     98

Clause 1189: Calculation of profits or losses of separate film trade     98

Clause 1190: Income from the film     98

Clause 1191: Costs of the film     99

Clause 1192: When costs are taken to be incurred     99

Clause 1193: Pre-trading expenditure     99

Clause 1194: Estimates     99

Chapter 3: Film tax relief     99

Clause 1195: Availability and overview of film tax relief     99

Clause 1196: Intended theatrical release     99

Clause 1197: British film     100

Clause 1198: UK expenditure     100

Clause 1199: Additional deduction for qualifying expenditure     100

Clause 1200: Amount of additional deduction     100

Clause 1201: Film tax credit claimable if company has surrenderable loss     100

Clause 1202: Surrendering of loss and amount of film tax credit     100

Clause 1203: Payment in respect of film tax credit     100

Clause 1204: No account to be taken of amount if unpaid     101

Clause 1205: Artificially inflated claims for additional deduction or film tax credit     101

Clause 1206: Confidentiality of information     101

Clause 1207: Wrongful disclosure     101

Chapter 4: Film losses     102

Clause 1208: Application of sections 1209 and 1210     102

Clause 1209: Restriction on use of losses while film in production     102

Clause 1210: Use of losses in later periods     102

Clause 1211: Terminal losses     102

Chapter 5: Provisional entitlement to relief     103

Clause 1212: Introduction     103

Clause 1213: Certification as a British film     103

Clause 1214: The UK expenditure condition     104

Clause 1215: Film tax relief on basis that film is limited-budget film     104

Clause 1216: Time limit for amendments and assessments     104

Part 16: Companies with investment business     104

Chapter 1: Introduction     105

Clause 1217: Overview of Part     105

Clause 1218: “Company with investment business” and “investment business”     105

Chapter 2: Management expenses     105

Clause 1219: Expenses of management of a company’s investment business     105

Clause 1220: Meaning of “unallowable purpose”     106

Clause 1221: Amounts treated as expenses of management     106

Clause 1222: Income from a source not charged to tax     107

Clause 1223: Carrying forward expenses of management and other amounts     107

Clause 1224: Accounting period to which expenses are referable     107

Clause 1225: Accounts conforming with GAAP     107

Clause 1226: Accounts not conforming with GAAP     107

Clause 1227: Accounts not drawn up     107

Clause 1228: Credits that reverse debits     108

Clause 1229: Claw back of relief     108

Clause 1230: Meaning of “reversal amount”     108

Clause 1231: Absence of accounts     108

Chapter 3: Amounts treated as expenses of management     109

Clause 1232: Chapter applies to amounts not otherwise relieved     109

Clause 1233: Excess capital allowances     109

Clause 1234: Payments for restrictive undertakings     109

Clause 1235: Employees seconded to charities and educational establishments     110

Clause 1236: Payroll deduction schemes     110

Clause 1237: Counselling and other outplacement services     110

Clause 1238: Retraining courses     110

Clauses 1239 to 1243: Redundancy payments etc     110

Clause 1244: Contributions to local enterprise organisations or urban regeneration companies     111

Clause 1245: Payments to Export Credits Guarantee Department     111

Clause 1246: Levies under FISMA 2000     112

Chapter 4: Rules restricting deductions     112

Clause 1247: Introduction     112

Clause 1248: Expenses in connection with arrangements for securing a tax advantage     113

Clause 1249: Unpaid remuneration     113

Clause 1250: Unpaid remuneration: supplementary     113

Clause 1251: Car or motor cycle hire     113

Chapter 5: Companies with investment business: receipts     114

Clause 1252: Industrial development grants     114

Clause 1253: Contributions to local enterprise organisations or urban regeneration companies: disqualifying benefits     114

Clause 1254: Repayments under FISMA 2000     115

Chapter 6: Supplementary     115

Clause 1255: Meaning of some accounting terms     115

Part 17: Partnerships     115

Clause 1256: Overview of Part     116

Clause 1257: General provisions     116

Clause 1258: Assessment of partnerships     116

Clause 1259: Calculation of firm’s profits and losses     116

Clause 1260: Section 1259: supplementary     118

Clause 1261: Accounting periods of firms     118

Clause 1262: Allocation of firm’s profits or losses between partners     119

Clause 1263: Profit-making period in which some partners have losses     119

Clause 1264: Loss-making period in which some partners have profits     120

Clause 1265: Apportionment of profit share between partner’s accounting periods     120

Clause 1266: Resident partners and double taxation agreements     120

Clause 1267: Various rules for trades and property businesses     121

Clause 1268: Election for spreading under Chapter 14 of Part 3     122

Clause 1269: Interpretation of clauses 1267 and 1268     122

Clause 1270: Special provisions about farming and property income     122

Clause 1271: Sale of patent rights: effect of partnership changes     123

Clause 1272: Sale of patent rights: effect of later cessation of trade     124

Clause 1273: Limited liability partnerships     124

Part 18: Unremittable income     125

Clause 1274: Unremittable income: introduction     125

Clause 1275: Claim for relief for unremittable income     126

Clause 1276: Withdrawal of relief     126

Clause 1277: Income charged on withdrawal of relief after source ceases     127

Clause 1278: Valuing unremittable income     127

Part 19: General exemptions     127

Clause 1279: Exemption of profits from securities free of tax to residents abroad (“FOTRA securities”)     128

Clause 1280: Section 1279: supplementary provision     128

Clause 1281: Income from savings certificates     128

Clause 1282: Income from Ulster Savings Certificates     128

Clause 1283: Interest from tax reserve certificates     129

Clause 1284: Housing grants     129

Clause 1285: UK company distributions     129

Clause 1286: VAT repayment supplements     130

Clause 1287: Incentives to use electronic communications     130

Part 20: General calculation rules     130

Chapter 1: Restriction of deductions     130

Clause 1288: Unpaid remuneration     130

Clause 1289: Unpaid remuneration: supplementary     130

Clause 1290: Employee benefit contributions     131

Clause 1291: Making of “employee benefit contributions”     131

Clause 1292: Provision of qualifying benefits     131

Clause 1293: Timing and amount of certain qualifying benefits     131

Clause 1294: Provision or payment out of employee benefit contributions     132

Clause 1295: Profits calculated before end of 9 month period     132

Clause 1296: Interpretation of sections 1290 to 1296     132

Clause 1297: Life assurance business     132

Clause 1298: Business entertainment and gifts     132

Clause 1299: Business entertainment: exceptions     133

Clause 1300: Business gifts: exceptions     133

Clause 1301: Restriction of deductions for annual payments     133

Clause 1302: Social security contributions     133

Clause 1303: Penalties, interest and VAT surcharges     134

Clause 1304: Crime-related payments     134

Clause 1305: Dividends and other distributions     135

Chapter 2: Other general rules     135

Clause 1306: Losses calculated on same basis as miscellaneous income     135

Clause 1307: Apportionment etc of miscellaneous profits and losses to accounting period     135

Clause 1308: Expenditure brought into account in determining value of intangible asset     136

Clause 1309: Payments treated as made to visiting performers     136

Part 21: Other general provisions     136

Clause 1310: Orders and regulations     136