SCHEDULES

SCHEDULE 2Transitionals and savings

Part 15Research and development

Chapter 7 of Part 13: qualifying expenditure on contracted out R&D

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(1)

Section 1135(4) (time limit for notice of election for connected persons treatment) does not apply to a notice of an election under that section in relation to a sub-contractor payment made by a company if—

(a)

the company has qualifying expenditure on contracted out research and development (as defined in section 1102),

(b)

the sub-contractor is—

(i)

a charity,

(ii)

a university, or

(iii)

an association of a description specified in section 508 of ICTA (scientific research organisations), and

(c)

the notice is given before 1 August 2009.

(2)

In sub-paragraph (1) “sub-contractor” and “sub-contractor payment” have the same meaning as in Part 13 (see section 1133).