CIRD75950 | VRR: refunds of contributions and subcontract payments

FA02/SCH13/PARA25

A company that has made payments for sub-contracted R&D CIRD75400or made contributions to independent R&D CIRD75500 may receive a refund of all or part of the payment or contribution.

If it does treat the appropriate amount as Case I income.

There is one exception to this. If the company is an insurance company that has received relief by treating the payment or contribution as a deduction in calculating the profits chargeable to tax Case VI treat the appropriate amount as Case VI income.

For SMEs the appropriate amount is:

• 50% of the refund where the payment qualified for R&D tax credits for SMEs, and

• 150% of the refund in other cases.

For large companies the appropriate amount is:

• 50% of the refund where the payment could be deducted in computing trading profits, and

• 150% of the refund in other cases.

• For both SMEs and large companies the appropriate amount in respect of expenditure incurred on or after 1 August 2008 is 40% or 140% as appropriate.

For both SMEs and large companies the appropriate amount in respect of expenditure incurred on or after 1 August 2008 is 40% or 140% as appropriate.