SCHEDULES

SCHEDULE 31Tax relief for expenditure on research and development

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

Introductory

8

Part 1 of Schedule 12 to the Finance Act 2002 (c. 23) (entitlement to R&D relief: large companies) is amended in accordance with the following provisions of this Part of this Schedule.

Required minimum aggregate expenditure: reduction from £25,000 to £10,000

9

1

Paragraph 1 (entitlement to relief under Part 1 of the Schedule) is amended as follows.

2

In sub-paragraph (1)(b) (requirement for minimum qualifying R&D expenditure of £25,000 or time apportioned part of that amount) in sub-paragraphs (i) and (ii) for “£25,000” substitute “ £10,000 ”.

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.