Office of Public Sector Information
Section 28
1 (1) Schedule 20 to FA 2000 (tax relief for expenditure on research and development by small or medium-sized enterprises) is amended as follows.
(2) In paragraph 3 (qualifying R&D expenditure), in sub-paragraph (4), after paragraph (b) insert—
“(ba) is incurred on relevant payments to the subjects of a clinical trial (see paragraph 6A),”.
(3) After paragraph 6 (expenditure on software or consumable items), insert—
6A (1) For the purposes of this Schedule “relevant payment”, in relation to a subject of a clinical trial, means a payment made to him for participating in the trial.
(2) For the purposes of this Schedule “clinical trial” means an investigation in human subjects undertaken in connection with the development of a health care treatment or procedure.”
(4) In paragraph 10 (treatment of expenditure where company and sub-contractor are connected persons), in sub-paragraph (2)(a)(iii), for “or on software or consumable items” substitute “, on software or consumable items or on relevant payments to the subjects of a clinical trial”.
2 (1) Schedule 12 to FA 2002 (tax relief for expenditure on research and development: large companies etc) is amended as follows.
(2) In paragraph 4 (qualifying expenditure on direct research and development), in sub-paragraph (3)—
(a) omit the word “or” at the end of paragraph (b);
(b) after that paragraph insert—
“(ba) is incurred on relevant payments to the subjects of a clinical trial, or”.
(3) In paragraph 9 (expenditure on research and development directly undertaken by the SME), in sub-paragraph (2)—
(a) omit the word “or” at the end of paragraph (b);
(b) after that paragraph insert—
“(ba) is incurred on relevant payments to the subjects of a clinical trial, or”.
(4) In paragraph 17 (which applies certain definitions from Schedule 20 to FA 2000)—
(a) in the heading, after ““software or consumable items”” insert “, “relevant payments to the subjects of a clinical trial””;
(b) omit the word “and” at the end of paragraph (c);
(c) after that paragraph insert—
“(ca) paragraph 6A (relevant payments to subjects of clinical trials); and”.
3 (1) Schedule 13 to FA 2002 (tax relief for expenditure on vaccine research etc) is amended as follows.
(2) In paragraph 3 (qualifying expenditure on direct research and development), in sub-paragraph (5)—
(a) omit the word “or” at the end of paragraph (b);
(b) after that paragraph insert—
“(ba) is incurred on relevant payments to the subjects of a clinical trial, or”.
(3) In paragraph 5 (which applies certain definitions from Schedule 20 to FA 2000)—
(a) in the heading, after ““software or consumable items”,” insert ““relevant payments to the subjects of a clinical trial”,”;
(b) in sub-paragraph (3), after paragraph (c) insert—
“(ca) paragraph 6A (relevant payments to subjects of clinical trials);”.
(4) In paragraph 9 (relevant expenditure of the sub-contractor), in sub-paragraph (3)—
(a) omit the word “or” at the end of paragraph (b);
(b) after that paragraph insert—
“(ba) is incurred on relevant payments to the subjects of a clinical trial, or”.
Section 29
1 Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended as follows.
2 (1) Paragraph 10 (other claims and elections to be included in return) is amended as follows.
(2) In sub-paragraph (2) (claims to which Part 8, 9 or 9A of Schedule 18 applies) for “R&D tax credit” substitute “R&D tax relief”.
(3) After sub-paragraph (2A) insert—
“(2B) A claim to which Part 9BA of this Schedule applies (claims for relief under Schedule 12 to the Finance Act 2002) can only be made by being included in a company tax return (see paragraph 83LB).”
(4) In sub-paragraph (3) (claims to which Part 9C of Schedule 18 applies) for “tax credits under Schedule 13 to the Finance Act 2002” substitute “tax relief under Schedule 13 to the Finance Act 2002”.
3 In paragraph 83A (Part 9A: introduction) for “claims for R&D tax credits” substitute “claims for R&D tax relief”.
4 In each of the following provisions for “claim for an R&D tax credit” substitute “claim to which this Part of this Schedule applies”—
(a) paragraph 83B(1) (claim to be included in company tax return);
(b) paragraph 83C (content of claim);
(c) paragraph 83D (amendment or withdrawal of a claim);
(d) paragraph 83E(1) (time limit for claims).
5 In the title of Part 9A, “R&D tax credit” becomes “R&D tax relief”.
6 After paragraph 83L insert—
83LA This Part of this Schedule applies to claims for relief under Schedule 12 to the Finance Act 2002.
83LB (1) A claim to which this Part of this Schedule applies must be made by being included in the claimant company’s company tax return for the accounting period for which the claim is made.
(2) It may be included in the return originally made or by amendment.
83LC A claim to which this Part of this Schedule applies must specify the amount of the relief claimed, which must be an amount quantified at the time the claim is made.
83LD A claim to which this Part of this Schedule applies may be amended or withdrawn by the claimant company only by amending its company tax return.
83LE (1) A claim to which this Part of this Schedule applies may be made, amended or withdrawn at any time up to the first anniversary of the filing date for the company tax return of the claimant company for the accounting period for which the claim is made.
(2) The claim may be made, amended or withdrawn at a later date if an officer of Revenue and Customs allows it.”
7 In paragraph 83M (Part 9C: introduction) for “claims for tax credits” substitute “claims for relief”.
8 In paragraph 83R (penalty), in sub-paragraph (1)(a) for “a claim to which this Part of this Schedule applies” substitute “a claim for a tax credit under Schedule 13 to the Finance Act 2002”.
9 In the title of Part 9C, “tax credit” becomes “relief”.
10 The amendments made by paragraphs 2 to 9 have effect in relation to accounting periods ending on or after 31st March 2006.
11 (1) This paragraph applies where a company is entitled to relief under Schedule 20 to FA 2000 or Schedule 12 or 13 to FA 2002 for any accounting period of the company falling within sub-paragraph (2).
(2) An accounting period of a company falls within this sub-paragraph if it ends on a day falling after 31st March 2002 but before 31st March 2006.
(3) Sub-paragraphs (4) and (5) apply to any claim by the company for such relief for an accounting period falling within sub-paragraph (2), other than a claim by the company for—
(a) an R&D tax credit under Schedule 20 to FA 2000, or
(b) a tax credit under Schedule 13 to FA 2002.
(4) A claim to which this sub-paragraph applies may be made, amended or withdrawn by the company at any time up to and including 31st March 2008.
(5) A claim to which this sub-paragraph applies may be made, amended or withdrawn by the company at a later date if an officer of Revenue and Customs allows it.
Finance Act 2006