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Finance Act 2002

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Changes over time for: Paragraph 14

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No versions valid at: 01/06/2002

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Point in time view as at 01/06/2002. This version of this provision is not valid for this point in time. Help about Status

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There are currently no known outstanding effects for the Finance Act 2002, Paragraph 14. Help about Changes to Legislation

Valid from 24/07/2002

Research and development expenditure of group companiesU.K.

14(1)Sub-paragraph (2) applies where—

(a)a company (“A”) incurs expenditure on making a payment to another company (“B”) in respect of activities contracted out by A to B,

(b)the expenditure incurred on the payment is research and development expenditure of A, and

(c)A and B are members of the same group at the time the payment is made.

(2)For the purposes of this Schedule —

(a)any of the activities contracted out by A to B and directly undertaken by B shall be treated (to the extent that it would not otherwise be the case) as research and development directly undertaken by B, and

(b)where B makes a payment to a third party (“C”) in respect of any of those activities that are contracted out by B to C and directly undertaken by C, those activities shall be treated (to the extent that it would not otherwise be the case) as research and development contracted out by B to C.

(3)For the purposes of this paragraph A and B are members of the same group if they are members of the same group of companies for the purposes of Chapter 4 of Part 10 of the Taxes Act 1988 (group relief).

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