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.