SCHEDULES

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

Part 6 U.K. Expenditure on vaccine research etc: Schedule 13 to Finance Act 2002

Introductory U.K.

20 U.K. Schedule 13 to the Finance Act 2002 (tax relief for expenditure on vaccine research etc) is amended in accordance with the following provisions of this Part of this Schedule.

Reduction of required qualifying expenditure from £25,000 to £10,000 U.K.

21 (1) Paragraph 1 (entitlement to relief under the Schedule) is amended as follows. U.K.

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

Commencement Information

I1 Sch. 31 para. 21 has effect as specified by The Finance Act 2003, Section 168 (Appointed Day) Order 2003 (S.I. 2003/2497), art. 2

Direct research and development: qualifying expenditure on externally provided workers U.K.

22 U.K. In paragraph 3 (qualifying expenditure on direct research and development) for sub-paragraph (5) (the fourth condition, that the expenditure is incurred on staffing costs or consumable stores) substitute—

“(5) The fourth 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.”.

Commencement Information

I2 Sch. 31 para. 22 has effect as specified by The Finance Act 2003, Section 168 (Appointed Day) Order 2003 (S.I. 2003/2497), art. 2

Meaning of “qualifying expenditure on externally provided workers” U.K.

23 (1) Paragraph 5(3) (which applies certain definitions in Schedule 20 to the Finance Act 2000 (c. 17)) is amended as follows. U.K.

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

(3) In paragraph (d), for “(subsidised expenditure),” substitute “ (subsidised expenditure); and ”.

(4) After paragraph (d) insert the following paragraph—

“(e) paragraphs 8A to 8E (qualifying expenditure on externally provided workers),”.

(5) The heading to paragraph 5 accordingly becomes—

“Meaning of “relevant R&D”, “small or medium-sized enterprise”, “staffing costs”, “consumable stores”, “subsidised” and “qualifying expenditure on externally provided workers” U.K.

   ”.

Commencement Information

I3 Sch. 31 para. 23 has effect as specified by The Finance Act 2003, Section 168 (Appointed Day) Order 2003 (S.I. 2003/2497), art. 2

Relevant expenditure of sub-contractor: qualifying expenditure on externally provided workers U.K.

24 U.K. In paragraph 9 (relevant expenditure of sub-contractor) for sub-paragraph (3) (the second condition, that the expenditure must be 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.

In applying for the purposes of this sub-paragraph (by virtue of paragraph 5 above)—

paragraph 5 of Schedule 20 to the Finance Act 2000 (meaning of “staffing costs”), or

paragraphs 8A to 8E of that Schedule (qualifying expenditure on externally provided workers),

the references to the company shall be read as references to the sub-contractor.”.

Commencement Information

I4 Sch. 31 para. 24 has effect as specified by The Finance Act 2003, Section 168 (Appointed Day) Order 2003 (S.I. 2003/2497), art. 2