SCHEDULES
C1SCHEDULE 12Tax relief for expenditure on research and development
Part 6General provisions
17F1Meaning of “relevant research and development”, “staffing costs”, “ F4software or consumable items ” F5, “relevant payments to the subjects of a clinical trial” and “qualifying expenditure on externally provided workers"
The following provisions of Schedule 20 to the Finance Act 2000 (c. 17) (tax relief for R&D expenditure of small and medium-sized enterprises) apply for the purposes of this Schedule as they apply for the purposes of that Schedule—
a
paragraph 4 (relevant research and development);
b
paragraph 5 (staffing costs); F2...
F7ca
paragraph 6A (relevant payments to subjects of clinical trials); and
d
paragraphs 8A to 8E (qualifying expenditure on externally provided workers).
18Meaning of “qualifying body"
1
For the purposes of this Schedule “qualifying body” means—
a
a charity (within the meaning of section 506(1) of the Taxes Act 1988);
b
an institution of higher education;
c
an Association of a description specified in section 508 of the Taxes Act 1988 (scientific research organisations);
d
a health service body within the meaning of section 519A(2) of that Act; or
e
any other body prescribed, or of a description prescribed, by the Treasury, by order, for the purposes of this Schedule.
2
In sub-paragraph (1)(b), “institution of higher education” means—
a
an institution within the higher education sector within the meaning of the Further and Higher Education Act 1992 (c. 13);
b
an institution within the higher education sector within the meaning of Part 2 of the Further and Higher Education (Scotland) Act 1992 (c. 37) or a central institution within the meaning of the Education (Scotland) Act 1980 (c. 44); or
c
a higher education institution within the meaning of Article 30(3) of the Education and Libraries (Northern Ireland) Order 1993 (1993/ 2810 (N.I. 12)).
3
An order under this paragraph shall have effect in relation to such accounting periods or expenditure as may be specified in the order (which may include accounting periods beginning, or expenditure incurred, before the time the order is made).
19Other definitions etc
1
In this Schedule—
F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“research and development” has the meaning given by section 837A of the Taxes Act 1988.
F82
For the purposes of this Schedule whether a person is connected with another is determined in accordance with section 839 of the Taxes Act 1988.
20Transitional provision
1
This Schedule does not apply to expenditure incurred before 1st April 2002.
For this purpose no account shall be taken of section 401 of the Taxes Act 1988 (pre-trading expenditure treated as incurred when trading begins).
2
Paragraphs 1(1) and 7(1) (requirement of minimum amount of qualifying expenditure in an accounting period) apply to an accounting period beginning before and ending after that date as if so much of the period as falls on or after that date were a separate accounting period.
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