SCHEDULES

SCHEDULE 12Tax relief for expenditure on research and development

Part 1Entitlement to relief for R&D expenditure: large companies

3Qualifying R&D expenditure

For the purposes of this Schedule the company’s “qualifying R&D expenditure” is—

a

its qualifying expenditure on direct research and development (see paragraph 4),

b

its qualifying expenditure on sub-contracted research and development (see paragraph 5), and

c

its qualifying expenditure on contributions to independent research and development (see paragraph 6).