Qualifying sub-contracted R&D expenditureU.K.
8For 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 D[F1, 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.
Textual Amendments
F1Sch. 12 para. 8(a)(iii) and preceding word inserted (with effect in accordance with art. 1(3)(4) of the amending S.I.) by The Income Tax (Trading and Other Income) Act 2005 (Consequential Amendments) Order 2006 (S.I. 2006/959), arts. 1(2), 5(4)