Section 1112F | Restriction of credit and relief to companies that are going concerns

(1)Subsection (2) applies if a company makes a claim under section 1042C (claims for R&D expenditure credit) at a time when it is not a going concern.

(2)No amount is to be paid to the company at step 7 in section 1042I as a result of the claim.

(3)Subsection (2) ceases to apply (and the company accordingly becomes entitled to be paid) if the company becomes a going concern on or before the last day on which it would be entitled to amend the claim in accordance with paragraph 83E of Schedule 18 to FA 1998.

(4)A company may not make—

(a)a claim under section 1044 (R&D relief by way of additional deduction),

(b)an election under section 1045 (R&D relief by way of deemed trading loss), or

(c)a claim under section 1054 (R&D tax credit),

at a time when it is not a going concern.

(5)If a company ceases to be a going concern after making a claim under section 1054, it is treated as if it had not made the claim (and accordingly there is treated as having been no payment of R&D tax credit to carry interest under section 826 of ICTA).

(6)Subsection (5) does not apply so far as the claim relates to an amount that was paid or applied before the company ceased to be a going concern.