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HMRC internal manual

Corporate Intangibles Research and Development Manual

R&D tax relief: conditions to be satisfied: company a going concern (SME and vaccines schemes only)

CTA09/S1046 and S1057

A company may only claim

* the additional deduction for R&D spending CTA09/S1044
* alternative treatment of pre-trading expenditure or CTA09/S1045
* payable R&D tax credit CTA09/S1054

if it is a going concern at the time when the claim is made.

A company is a going concern if its latest published accounts were prepared on a going concern basis, and nothing in the accounts suggests that that status depends on its receiving R&D relief or tax credits or VRR or vaccine tax credit.

If the company ceases to be a going concern after making a claim under CTA09/S1054, the claim is treated as not having been made. However this does not apply to any credit given before the company changed its status.

This requirement applies to claims made on or after 1 August 2008 (SI2008/1929).

FA 2012 clarified that a company in either administration or liquidation cannot make a claim to relief. This provision applies for claims made on or after 1 April 2012.