Finance Act 2006

Amendments to Schedule 12 to FA 2002

2 (1) Schedule 12 to FA 2002 (tax relief for expenditure on research and development: large companies etc) is amended as follows.

(2) In paragraph 4 (qualifying expenditure on direct research and development), in sub-paragraph (3)—

(a) omit the word “or” at the end of paragraph (b);

(b) after that paragraph insert—

“(ba) is incurred on relevant payments to the subjects of a clinical trial, or”.

(3) In paragraph 9 (expenditure on research and development directly undertaken by the SME), in sub-paragraph (2)—

(a) omit the word “or” at the end of paragraph (b);

(b) after that paragraph insert—

“(ba) is incurred on relevant payments to the subjects of a clinical trial, or”.

(4) In paragraph 17 (which applies certain definitions from Schedule 20 to FA 2000)—

(a) in the heading, after ““software or consumable items”” insert “, “relevant payments to the subjects of a clinical trial””;

(b) omit the word “and” at the end of paragraph (c);

(c) after that paragraph insert—

“(ca) paragraph 6A (relevant payments to subjects of clinical trials); and”.