Paragraphs 7 to 11 make provision for determining the qualifying expenditure of a company on sub-contracted research and development.

F1...

For the purposes of those paragraphs a company (“the principal”) incurs expenditure on sub-contracted research and development if it makes a payment (a “sub-contractor payment”) to another person (“the sub-contractor”) in respect of research and development contracted out by the company to that person.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .