SCHEDULES

C1SCHEDULE 13Tax relief for expenditure on vaccine research etc

Annotations:
Modifications etc. (not altering text)
C1

Sch. 13 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

Part 5Supplementary provisions

I125Refunds of contributions to independent research and development

1

This paragraph applies where a company receives a payment refunding the whole or any part of—

a

any qualifying expenditure on sub-contracted research and development to which paragraph 6(3) applies (research sub-contracted to charities, universities and scientific research organisations), or

b

any qualifying expenditure on contributions to independent research and development (see paragraph 12),

in respect of which it obtains relief under this Schedule.

2

The appropriate amount shall be treated as income of the company chargeable to tax under Case I of Schedule D for the accounting period in which the payment is made.

3

Where, by virtue paragraph 23(3) (profits of life assurance business chargeable to tax under Case VI of Schedule D), the relief obtained in respect of the contribution or expenditure concerned is a deduction in computing for tax purposes the profits of a part of the life assurance business of the company—

a

sub-paragraph (2) does not apply, and

b

the appropriate amount shall be treated as income referrable to that part which is chargeable to tax under Case VI of Schedule D for the accounting period in which the payment is made.

4

For this purpose “the appropriate amount” means—

a

where the company qualifies as a small or medium-sized enterprise in the accounting period in which it obtains the relief—

i

if it is entitled to relief under Schedule 20 to the Finance Act 2000 (c. 17) in respect of the qualifying expenditure refunded, 50% of the payment, and

ii

in any other case, 150% of the payment; and

b

where the company does not so qualify—

i

if the relief falls within paragraph 21(2) (relief for qualifying expenditure deductible in computing profits for tax purposes), 50% of the payment, and

ii

in any other case, 150% of the payment.