Conditions that must be satisfied by qualifying expenditure on sub-contracted research and developmentU.K.
7(1)Expenditure of a company on sub-contracted research and development is not qualifying expenditure unless it satisfies the following conditions.
(2)The first condition is that the expenditure is on research and development directly undertaken on behalf of the company by the sub-contractor.
(3)The second condition is that the expenditure is on qualifying R&D activity (see paragraph 4).
(4)The third condition is that the R&D activity in respect of which the expenditure is incurred is relevant research and development in relation to the company.
(5)The fourth condition is that the expenditure is not of a capital nature.
(6)The fifth condition is that the expenditure is not subsidised.
Commencement Information
I1Sch. 13 has effect in relation to expenditure incurred on or after 22.4.2003 by The Finance Act 2002, Schedule 13 (Appointed Day) Order 2003 (S.I. 2003/1472), art. 2 (with para. 28(1))