Finance Act 2000

5 (1) For the purposes of this Schedule the staffing costs of a company are— U.K.

[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;

[F2 (ba) the compulsory contributions paid by the company in respect of benefits for directors or employees of the company under the social security legislation of an EEA State (other than the United Kingdom) or Switzerland;] and

(c) the contributions paid by the company to any pension fund F3 . . . operated for the benefit of directors or employees of the company.

F4 (1ZA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F5 (1ZB) In sub-paragraph (1)(ba) “social security legislation” means legislation relating to any of the branches of social security listed in Article 3(1) of Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the co-ordination of social security systems (as amended from time to time).]

[F6 (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 F7 ... —

F8 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) F9 ... 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.

Textual Amendments

F1 Sch. 20 para. 5(1)(a) substituted (22.7.2004) (with effect in accordance with Sch. 17 para. 7(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 17 para. 7(1)(a)

F2 Sch. 20 para. 5(1)(ba) inserted (with effect in accordance with s. 27(10) of the amending Act) by Finance Act 2008 (c. 9), s. 27(2)

F3 Words in Sch. 20 para. 5(1)(c) repealed (24.7.2002 with effect as mentioned in the note under Sch. 40 Pt. 3(5) of the amending Act) by 2002 c. 23, ss. 56, 141, Sch. 15 para. 3(a), Sch. 40 Pt. 3(5) Note

F4 Sch. 20 para. 5(1ZA) repealed (22.7.2004) (with effect in accordance with Sch. 17 para. 7(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 17 para. 7(1)(b), Sch. 42 Pt. 2(12)

F5 Sch. 20 para. 5(1ZB) inserted (with effect in accordance with s. 27(10) of the amending Act) by Finance Act 2008 (c. 9), s. 27(3)

F6 Sch. 20 para. 5(1A) inserted (24.7.2002 with effect as mentioned in s. 56 of the amending Act) by 2002 c. 23, s. 56, Sch. 15 para. 3(b)

F7 Words in Sch. 20 para. 5(3) repealed (10.7.2003) (with effect in accordance with s. 168(4)(b) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 5(2), Sch. 43 Pt. 3(10)

F8 Sch. 20 para. 5(3)(a) (b) repealed (10.7.2003) (with effect in accordance with s. 168(4)(b) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 5(3), Sch. 43 Pt. 3(10)

F9 Words in Sch. 20 para. 5(3)(c) repealed (10.7.2003) (with effect in accordance with s. 168(4)(b) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 5(4), Sch. 43 Pt. 3(10)

Modifications etc. (not altering text)

C1 Sch. 20 para. 5 applied (24.7.2002 with effect as mentioned in s. 53(1) of the amending Act) by 2002 c. 23, s. 53, Sch. 12 para. 17(b)

C2 Sch. 20 para. 5 applied (with modifications) (22.4.2003) by Finance Act 2002 (c. 23), Sch. 13 para. 5(3)(b); S.I. 2003/1472, art. 2