SCHEDULES
SCHEDULE 12Tax relief for expenditure on research and development
Part 1Entitlement to relief for R&D expenditure: large companies
6Qualifying expenditure on contributions to independent research and development
1
The company’s qualifying expenditure on contributions to independent research and development is expenditure incurred by it where the following conditions are satisfied.
2
The first condition is that the expenditure is incurred in making payments to—
a
a qualifying body,
b
an individual, or
c
a partnership, each member of which is an individual,
for the purpose of funding research and development carried on by the body, individual or partnership concerned (“the funded R&D”).
3
The second condition is that the funded R&D is relevant research and development in relation to the company.
4
The third condition is that the funded R&D is not contracted out to the qualifying body, individual or partnership concerned by another person.
5
The fourth condition is that—
a
if the payment is made to an individual, the company is not connected with the individual when the payment is made, and
b
if the payment is made to a partnership (other than a qualifying body), the company is not connected with any member of the partnership when the payment is made.