Qualifying expenditure on contributions to independent research and developmentU.K.
6(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.