SCHEDULE 12Tax relief for expenditure on research and development
Part 5Supplementary provisions
Refunds of contributions to independent research and development etc
15
(1)
This paragraph applies where a company receives a payment refunding the whole or any part of—
(a)
any qualifying expenditure on sub-contracted research and development (see paragraph 5),
(b)
any qualifying expenditure on contributions to independent research and development (see paragraph 6), F1...
(c)
any expenditure which is qualifying sub-contracted R&D expenditure by virtue of paragraph 10, F2or
(d)
any expenditure which is qualifying additional SME expenditure F3or capped SME expenditure,
in respect of which it obtains relief under this Schedule.
(2)
The appropriate amount shall be treated as income of the company chargeable to tax under Case I of Schedule D for the accounting period in which the payment is made.
(3)
Where, by virtue of paragraph 13(3) F4(gross roll-up business), the relief obtained in respect of the contribution or expenditure concerned is a deduction in computing for tax purposes the profits of F5the gross roll-up business of the company—
(a)
sub-paragraph (2) does not apply, and
(b)
the appropriate amount shall be treated as income referrable to F6the gross roll-up business which is chargeable to tax under Case VI of Schedule D for the accounting period in which the payment is made.
(4)
For this purpose “the appropriate amount” means F730% of the payment.