Part 6 Research and development allowances
Chapter 2 Qualifying expenditure
439 Qualifying expenditure
1
In this Part “qualifying expenditure” means capital expenditure incurred by a person on research and development directly undertaken by him or on his behalf if—
a
he is carrying on a trade when the expenditure is incurred and the research and development relates to that trade, or
b
after incurring the expenditure he sets up and commences a trade connected with the research and development.
2
The same expenditure may not be taken into account as qualifying expenditure in relation to more than one trade.
3
The trade by reference to which expenditure is qualifying expenditure is referred to in this Part as “the relevant trade” in relation to that expenditure.
4
If capital expenditure is partly within subsection (1) and partly not, the expenditure is to be apportioned in a just and reasonable manner.
5
References in this Chapter to research and development related to a trade include—
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.