R&D tax reliefs: large company scheme: pre-trading expenditure
Under CTA09/S61 pre-trading expenditure is normally treated as incurred on the first day that trading occurs. A deduction for the expenditure is allowed against the profit of the first accounting period in which the company trades.
R&D tax relief for large companies is dealt with in the same way.
However where the pre-trading expenditure was incurred before 1 April 2002 the expenditure does not attract R&D tax relief (CTA09/Sch2 Paras 113 & 114).
Pre-trading expenditure for SMEs is dealt with at CIRD90200.