Finance Act 2002 (c. 23)

SCHEDULES

SCHEDULE 12 U.K. Tax relief for expenditure on research and development

Part 2 U.K. Entitlement to relief for R&D expenditure: work subcontracted to small or medium-sized enterprise

Qualifying sub-contracted R&D expenditure U.K.

8 For the purposes of this Schedule, the SME’s “qualifying sub-contracted R&D expenditure” is the expenditure incurred by the SME on research and development that is contracted out to it where—

(a) that research and development is contracted out to the SME—

(i) by a large company, or

(ii) by any person otherwise than in the course of carrying on a trade, profession or vocation the profits of which are chargeable to tax under Case I or II of Schedule D; and

(b) the conditions of either paragraph 9 or paragraph 10 are satisfied.