SCHEDULES

SCHEDULE 31Tax relief for expenditure on research and development

Part 2Large companies: Part 1 of Schedule 12 to Finance Act 2002

Qualifying expenditure on externally provided workers

10

In paragraph 4 (qualifying expenditure on direct research and development) for sub-paragraph (3) (the second condition, that the expenditure is incurred on staffing costs or consumable stores) substitute—

3

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.