SCHEDULE 20 Tax relief for expenditure on research and development
Part I Entitlement to relief
Staffing costs
5
(1)
For the purposes of this Schedule the staffing costs of a company are—
F1(a)
the emoluments paid by the company to directors or employees of the company, including all salaries, wages, perquisites and profits whatsoever other than benefits in kind;
(b)
the secondary Class 1 national insurance contributions paid by the company; and
(c)
the contributions paid by the company to any pension fund F2. . . operated for the benefit of directors or employees of the company.
F3(1ZA)
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F4(1A)
In sub-paragraph (1)(c) “pension fund” means any scheme, fund or other arrangements established and maintained (whether in the United Kingdom or elsewhere) for the purpose of providing pensions, retirement annuities, allowances, lump sums, gratuities or other superannuation benefits (with or without subsidiary benefits).
In this sub-paragraph “scheme” includes any deed, agreement or series of agreements.
(2)
The staffing costs of a company attributable to relevant research and development are those paid to, or in respect of, directors or employees directly and actively engaged in such research and development.
(3)
In the case of a director or employee partly engaged directly and actively in relevant research and development F5... —
F6(a)
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F6(b)
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(c)
F7... an appropriate proportion of the staffing costs relating to him are treated as attributable to relevant research and development.
(4)
For the purpose of sub-paragraphs (2) and (3) persons who provide services, such as secretarial or administrative services, in support of activities carried on by others, are not, by virtue of providing those services, to be treated as themselves directly and actively engaged in those activities.