SCHEDULES

SCHEDULE 20 U.K. Tax relief for expenditure on research and development

Part I U.K. Entitlement to relief

Modifications etc. (not altering text)

C1 Sch. 20 (Parts I-III) restricted (24.7.2002 with effect as mentioned in Sch. 13 para. 28(1) of the amending Act) by 2002 c. 23, s. 54, Sch. 13 Pt. 2 para. 17(2)

Treatment of sub-contractor payment in other cases U.K.

12 Where—

(a) the company makes a sub-contractor payment, and

(b) paragraph 10 (treatment of expenditure where company and sub-contractor are connected) does not apply,

65% of the amount of the sub-contractor payment is treated as qualifying expenditure on sub-contracted research and development.