C1Part 3Trading income
F1CHAPTER 6ATrade profits: R&D expenditure credits
Pt. 3 Ch. 6A inserted (with effect in accordance with Sch. 15 para. 27 of the amending Act) by Finance Act 2013 (c. 29), Sch. 15 para. 1
SMEs: qualifying expenditure on sub-contracted R&D
104DExpenditure on sub-contracted R&D undertaken in-house
1
This section applies to expenditure on research and development contracted out to a company if conditions A, B and C are met.
2
Condition A is that the research and development is undertaken by the company itself.
3
Condition B is that the expenditure is—
a
incurred on staffing costs (see section 1123),
b
incurred on software or consumable items (see section 1125),
c
qualifying expenditure on externally provided workers (see section 1127), or
d
incurred on relevant payments to the subjects of a clinical trial (see section 1140).
4
Condition C is that the expenditure is attributable to relevant research and development in relation to the company.
5
See sections 1124, 1126 and 1132 for provision about when expenditure within subsection (3)(a), (b) or (c) is attributable to relevant research and development.
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)