Section 357PB | Additional deduction under section 1044 of CTA 2009

From legislation.gov.uk

(1)This section applies where—

(a)a company is entitled to corporation tax relief under section 1044 of CTA 2009 (additional deduction in calculating profits of a trade) for an accounting period in relation to any qualifying Chapter 2 expenditure,

(b)the company is a Northern Ireland company in the period, and

(c)some or all of the qualifying Chapter 2 expenditure is Northern Ireland qualifying Chapter 2 expenditure.

(2)Section 1044(8) of CTA 2009 (amount of additional deduction) has effect, in relation to the Northern Ireland qualifying Chapter 2 expenditure, as if the percentage specified in that provision were the adjusted percentage.

(3)For the purposes of this section “the adjusted percentage” means—

Formula

A \times \frac{MR}{NIR}

where—

A is the percentage specified in section 1044(8) of CTA 2009;

MR is the main rate for the financial year in which the expenditure is incurred;

NIR is the Northern Ireland rate for the financial year in which the expenditure is incurred.

(4)So much of the additional deduction under section 1044 of CTA 2009 as is (by virtue of this section) calculated by reference to the adjusted percentage forms part of Northern Ireland profits or Northern Ireland losses of the trade.