Finance Act 2003 (c. 14)

SCHEDULES

SCHEDULE 31 Tax relief for expenditure on research and development

Part 1 Small 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),”.