Section 1112J | Chapter 2 relief for Northern Ireland companies

(1)This section applies for the purpose of determining the entitlement of a Northern Ireland company to relief under Chapter 2.

(2)A Northern Ireland company is entitled to additional relief under Chapter 2 only to the extent that the additional relief would be exempted from notification under Article 108(3) of the TFEU by a de minimis aid regulation listed in paragraph 3.4 of Annex 5 to the Windsor Framework (as amended or replaced from time to time).

(3)In subsection (2), “additional relief” means the difference between the value of the relief claimed by the company under Chapter 2 in respect of expenditure and the value of the relief that could have been obtained by the company under Chapter 1A in respect of that expenditure.

(4)This section does not apply to a company in relation to an accounting period if the company—

(a)has not, at any time during the accounting period, carried on a trade involving—

(i)trade in goods, or

(ii)the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity, and

(b)has notified an officer of Revenue and Customs in writing that it wishes to rely on the exception in this subsection.

(5)In this section—

“Northern Ireland company” means a company whose registered office is in Northern Ireland;

“TFEU” means the Treaty on the Functioning of the European Union as it has effect by virtue of Article 10 of the Windsor Framework;

“Windsor Framework” means the part of the EU withdrawal agreement known as the Windsor Framework by virtue of Joint Declaration No. 1/2023 of 24th March 2023 made by the European Union and the United Kingdom in the Joint Committee established by the EU withdrawal agreement.