Finance Act 2002

[F1Meaning of “relevant R&D”, “small or medium-sized enterprise”, “staffing costs”, “ [F2software or consumable items] ”, “subsidised” and “qualifying expenditure on externally provided workers.]U.K.

5(1)For the purposes of this Schedule “relevant research and development”, in relation to a company, means research and development—

(a)related to a trade carried on by the company, or

(b)from which it is intended that a trade to be carried on by the company will be derived.

(2)For the purposes of this Schedule research and development related to a trade carried on by the company includes research and development which may lead to or facilitate an extension of that trade.

(3)The following provisions of Schedule 20 to the Finance Act 2000 (c. 17) (tax relief for R&D expenditure of small and medium-sized companies) apply for the purposes of this Schedule as they apply for the purposes of that Schedule—

(a)paragraph 2 (meaning of “small or medium-sized enterprise");

(b)paragraph 5 (staffing costs);

(c)paragraph 6 (expenditure on [F2software or consumable items] ); F3...

(d)paragraph 8 [F4(subsidised expenditure); and]

[F5(e)paragraphs 8A to 8E (qualifying expenditure on externally provided workers),]

except that in their application for the purposes of this Schedule, references in that Schedule to relevant research and development shall be construed in accordance with sub-paragraphs (1) and (2) above.

Textual Amendments

F1Sch. 13 para. 5 heading substituted (with effect in accordance with s. 168(3)(a) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 23(5)

F2Words in Sch. 13 substituted (with effect in accordance with s. 141(3)-(7)) by Finance Act 2004 (c. 12), s. 141(2)(c); S.I. 2005/123, art. 2

F3Word in Sch. 13 para. 5(3) repealed (with effect in accordance with s. 168(3)(a) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 23(2), Sch. 43 Pt. 3(10)

F4Words in Sch. 13 para. 5(3)(d) substituted (with effect in accordance with s. 168(3)(a) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 23(3)

F5Sch. 13 para. 5(3)(e) inserted (with effect in accordance with s. 168(3)(a) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 23(4)

Commencement Information