Finance Act 2003

Part 5 Supplementary: amendments to Parts 3 to 6 of Schedule 12 to Finance Act 2002

Introductory

16 Parts 3 to 6 of Schedule 12 to the Finance Act 2002 (c. 23) are amended in accordance with the following provisions of this Part of this Schedule.

Deduction in computing profits of trade

17 (1) Paragraph 11 is amended as follows.

(2) In sub-paragraph (1) (application of paragraph) for “Part 1 or 2” substitute “Part 1, 2 or 2A”.

(3) In sub-paragraph (3) (meaning of “qualifying expenditure”) omit the word “and” immediately preceding paragraph (b) and at the end of that paragraph insert “, and

(c) in the case of relief under Part 2A, qualifying additional SME expenditure (see paragraph 10B).”.

Refunds of contributions to independent research and development

18 In paragraph 15(1) (refunds of certain payments) omit the word “or” immediately preceding paragraph (c) and at the end of that paragraph insert “, or

(d) any expenditure which is qualifying additional SME expenditure,”.

Meaning of “qualifying expenditure on externally provided workers”

19 (1) Paragraph 17 (which applies certain definitions from Schedule 20 to the Finance Act 2000 (c. 17)) is amended as follows.

(2) Omit the word “and” immediately preceding paragraph (c).

(3) At the end of paragraph (c) add “; and

(d) paragraphs 8A to 8E (qualifying expenditure on externally provided workers).”.

(4) The heading to the paragraph accordingly becomes—

“Meaning of “relevant research and development”, “staffing costs”, “consumable stores” and “qualifying expenditure on externally provided workers”

 ”.