Taxes Consolidation Act 1997 section 769J

Interaction with sections 766, 766A and 766B

Section 769J prevents the payable R&D tax credit from being increased by reference to knowledge development box (KDB) relief.

• The section addresses the interaction between payable R&D tax credits under section 766(4B)(a) and the knowledge development box regime.
• When calculating the excess R&D credit available as a payable credit, the computation must be performed as if the KDB Chapter did not apply.
• This ensures that relief under the KDB cannot inflate the amount of the payable R&D tax credit.
• In practice, the payable R&D tax credit must be determined before any deduction is taken for a KDB allowance.