SCHEDULES

SCHEDULE 31 U.K.Tax relief for expenditure on research and development

Part 3 U.K.Work sub-contracted to SMEs: Part 2 of Schedule 12 to Finance Act 2002

R&D directly undertaken by SME: qualifying expenditure on externally provided workers U.K.

14 U.K.In paragraph 9 (expenditure on research and development directly undertaken by SME) for sub-paragraph (2) (the second condition, that the expenditure must be incurred on staffing costs or consumable stores) substitute—

“(2) 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.”.