SCHEDULES
SCHEDULE 12Tax relief for expenditure on research and development
Part 5Supplementary provisions
15Refunds of contributions to independent research and development etc
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), or
c
any expenditure which is qualifying sub-contracted R&D expenditure by virtue of paragraph 10,
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) (profits of life assurance business chargeable to tax under Case VI of Schedule D), the relief obtained in respect of the contribution or expenditure concerned is a deduction in computing for tax purposes the profits of a part of the life assurance business of the company—
a
sub-paragraph (2) does not apply, and
b
the appropriate amount shall be treated as income referrable to that part 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 25% of the payment.