SCHEDULES

SCHEDULE 12 U.K. Tax relief for expenditure on research and development

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

Expenditure on research and development directly undertaken by the SME U.K.

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

[F1 (2) The second condition is that the expenditure—

(a) is incurred on staffing costs,

(b) is incurred on consumable stores, or

(c) is qualifying expenditure on externally provided workers.]

(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.

Textual Amendments

F1 Sch. 12 para. 9(2) substituted (with effect in accordance with s. 168(3)(b) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 14