Commentary on Sections Overview Overview Section 1100: Large companies: qualifying expenditure “for” an accounting period
2855.This section explains how qualifying expenditure is allocated to the accounting periods of a large company. It is based on paragraph 2 of Schedule 13 to FA 2002.
2856.Subsection (1) deals with in-house direct research and development and contracted out research and development. Expenditure is incurred for an accounting period if it is deductible in calculating the trade profits for that period. Unlike small or medium-sized enterprises the normal rules for pre-trading expenditure in section 61 in Part 3 apply (see subsection (2)). Any pre-trading expenditure will be treated as incurred the day the company starts trading.