Modifications etc. (not altering text)
C1Pt. 7 modified (8.11.1995) by Atomic Energy Authority Act 1995 (c. 37), Sch. 3 para. 17(1)(2)
Notwithstanding anything in section 74 of the principal Act (general rules as to deductions not allowable in computing the profits or gains of a trade), where a person carrying on a trade—
(a)incurs expenditure not of a capital nature on scientific research related to that trade and directly undertaken by him or on his behalf, or
(b)pays any sum to any scientific research association for the time being approved for the purposes of this section by the Secretary of State, being an association which has as its object the undertaking of scientific research related to the class of trade to which the trade he is carrying on belongs, or
(c)pays any sum to be used for such scientific research as is mentioned in paragraph (b) above to any such university, college research institute or other similar institution as is for the time being approved for the purposes of this section by the Secretary of State,
the expenditure incurred or sum paid, as the case may be, may be deducted as an expense in computing the profits or gains of the trade for the purposes of tax.