SCHEDULES

SCHEDULE 12Tax relief for expenditure on research and development

Part 2Entitlement to relief for R&D expenditure: work subcontracted to small or medium-sized enterprise

9Expenditure on research and development directly undertaken by the SME

1

The first condition of this paragraph is that the expenditure is incurred on research and development directly undertaken by the SME.

2

The second condition is that the expenditure is incurred—

a

on staffing costs, or

b

on consumable stores.

3

The third condition is that the expenditure is attributable to relevant research and development in relation to the SME.

4

The fourth condition is that the expenditure is not of a capital nature.