Schedules
Schedule 1Relief for research and development
Part 4Miscellaneous amendments
17Accounts treated as prepared on going concern basis
1
In section 104T (R&D expenditure credits: “going concern”), after subsection (4) insert—
4A
For the purposes of this section, where a company (“A”) is a member of the same group as another company (“B”) and A’s latest published accounts were not prepared on a going concern basis by reason only of a relevant group transfer, the accounts are to be treated as if they were prepared on a going concern basis.
4B
For the purposes of this section a “relevant group transfer” is a transfer within the accounting period to which the latest published accounts relate by A of its trade and research and development to another member of the group mentioned in subsection (4A).
2
In section 1046 (R&D relief for SMEs: relief only available where company is going concern), after subsection (2C) insert—
2D
For the purposes of this section, where a company (“A”) is a member of the same group as another company (“B”) and A’s latest published accounts were not prepared on a going concern basis by reason only of a relevant group transfer, the accounts are to be treated as if they were prepared on a going concern basis.
2E
For the purposes of this section—
a
a “relevant group transfer” is a transfer, within the accounting period to which the latest published accounts relate, by A of its trade and research and development to another member of the group mentioned in subsection (2D);
b
A and B are members of the same group if they are members of the same group of companies for the purposes of Part 5 of CTA 2010 (group relief).
3
In section 1057 (R&D relief for SMEs: tax credit only available where company is a going concern), after subsection (4C) insert—
4D
For the purposes of this section, where a company (“A”) is a member of the same group as another company (“B”) and A’s latest published accounts were not prepared on a going concern basis by reason only of a relevant group transfer, the accounts are to be treated as if they were prepared on a going concern basis.
4E
For the purposes of this section—
a
a “relevant group transfer” is a transfer, within the accounting period to which the latest published accounts relate, by A of its trade and research and development to another member of the group mentioned in subsection (4D);
b
A and B are members of the same group if they are members of the same group of companies for the purposes of Part 5 of CTA 2010 (group relief).