SCHEDULES

SCHEDULE 31Tax relief for expenditure on research and development

Part 1Small and medium-sized enterprises: Schedule 20 to Finance Act 2000

Required minimum aggregate expenditure: inclusion of new class of expenditure

3

(1)

Paragraph 1 is also amended as follows.

(2)

In sub-paragraph (1)(b) (requirement for minimum aggregate expenditure)—

(a)

for “paragraph 3) and” substitute “ paragraph 3), ”; and

(b)

after “Finance Act 2002)” insert “ and its qualifying additional SME expenditure (as defined in paragraph 10B of that Schedule) ”.

(3)

In sub-paragraph (3A) (meaning of “deductible” in relation to qualifying sub-contracted R&D expenditure)—

(a)

after “(1)(b)” insert“, each of the following—

(a)

 ”;

(b)

after “Finance Act 2002)” insert “ , and ”; and

(c)

after the paragraph (a) so formed, insert the following paragraph—

“(b)

a company’s qualifying additional SME expenditure (as defined in paragraph 10B of that Schedule),”.