SCHEDULES

SCHEDULE 20 Tax relief for expenditure on research and development

Part I Entitlement to relief

Relevant research and development

4

(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—

(a)

research and development which may lead to or facilitate an extension of that trade, and

(b)

research and development of a medical nature which has a special relation to the welfare of workers employed in that trade.