Commentary on Sections Overview Chapter 1: Introduction Section 1039: Overview of Part
2697.This section gives an overview of the Part. It is new.
2698.The source legislation refers to “tax relief” given to companies in calculating their trade profits. Subsection (1) makes clear that the relief is given only to companies liable to corporation tax. See Change 77 in Annex 1. This change affects the following sections in this Part: sections 1044, 1045, 1063, 1068, 1074, 1087 and 1092.
2699.The reference to Part 9A of Schedule 18 to FA 1998 in subsection (10) is to that Part as amended by this Act (see Schedule 1). As this Act brings all the additional reliefs for research and development together, it repeals Parts 9BA and 9C of Schedule 18 to FA 1998.
2700.Chapters 2 to 4 and 7 of this Part provide for relief in the case of companies which are small or medium-sized enterprises as defined for the purposes of European Union rules on state aid. Section 1120 modifies the basic definition of “small or medium-sized enterprise” in section 1119 by increasing the limits above which a company ceases to be a small or medium-sized enterprise. Schedule 2 (transitionals and savings) contains provision excluding that modified definition in relation to expenditure incurred before 1 August 2008.