SCHEDULES
C1SCHEDULE 12Tax relief for expenditure on research and development
Part 2Entitlement to relief for R&D expenditure: work subcontracted to small or medium-sized enterprise
8Qualifying sub-contracted R&D expenditure
For the purposes of this Schedule, the SME’s “qualifying sub-contracted R&D expenditure” is the expenditure incurred by the SME on research and development that is contracted out to it where—
a
that research and development is contracted out to the SME—
i
by a large company, or
ii
by any person otherwise than in the course of carrying on a trade, profession or vocation the profits of which are chargeable to tax under Case I or II of Schedule DF1, or
iii
by any person otherwise than in the course of carrying on wholly or partly in the United Kingdom a trade, profession or vocation the profits of which are chargeable to tax under Chapter 2 of Part 2 of the Income Tax (Trading and Other Income) Act 2005; and
b
the conditions of either paragraph 9 or paragraph 10 are satisfied.
Sch. 12 modified (with effect as specified in art. 2 of the commencing S.I. of the commencing S.I.) by Finance Act 2004 (c. 12), s. 53(2)(6); S.I. 2004/3268, art. 2