Section 357BLG | Cases where the company is a new entrant with insufficient information about pre-enactment expenditure

(1)This section applies if—

(a)the accounting period begins before 1 July 2021 and the company is a new entrant (so that subsection (3) of section 357BLF applies), and

(b)the company has insufficient information about its expenditure in the period which begins with 1 July 2013 and ends with 30 June 2016 to be able to calculate the R&D fraction for the sub-stream.

(2)If the accounting period begins on or after 1 July 2019, the company may elect that, for the purposes of enabling it to determine the R&D fraction for the sub-stream, section 357BLF is to have effect as if in subsection (3) for “1 July 2013” there were substituted “ 1 July 2016 ”.

(3)If the accounting period begins before 1 July 2019 the company may elect that, for the purposes of enabling it to determine the R&D fraction for the sub-stream, sections 357BL to 357BLE are to have effect as if—

(a)any reference in those sections to the relevant period were to the period of three years ending with the last day of the accounting period,

(b)in section 357BLB, for subsections (5) and (6) there were substituted—

(5)In this section and sections 357BLC and 357BLD, “relevant research and development” means research and development (within the meaning of section 1138) which relates to the trade.

, and

(c)in section 357BLE—

(i)in each of subsections (2), (3) and (4) the word “relevant” were omitted, and

(ii)subsection (6) were omitted.