CIRD190000 - R&D Tax Reliefs: reformed reliefs: exempt foreign permanent establishments

Expenditure attributable to an exempt foreign permanent establishment cannot be qualifying expenditure under either Chapter 1A (new RDEC) or Chapter 2 (ERIS), because it fails Condition D of CTA09/S1052, CTA09/S1053, S1042D, and S1042E (see CIRD131000).

CTA09/1138B provides that expenditure is attributable to an exempt foreign permanent establishment for a given accounting period if:

• an election under CTA09/S18A applies to the period
  
  AND
  
  
• the expenditure is brought into account in calculating a relevant profits amount or a relevant losses amount for the purposes of CTA09/S18A is it applies in relation to the period

CTA09/S18A is outside of the scope of this guidance. Please refer to guidance in the International Manual at INTM280000 and following.