Part 3Trading income

F1CHAPTER 6ATrade profits: R&D expenditure credits

SMEs: capped R&D expenditure

104ICapped R&D expenditure

For the purposes of this Chapter a company's “capped R&D expenditure” means any expenditure—

(a)

in respect of which the company is not entitled to relief under Chapter 2 of Part 13 merely because of section 1113 (cap on R&D aid),

(b)

which is not qualifying expenditure on sub-contracted R&D, and

(c)

which would have been qualifying R&D expenditure had the company been a large company throughout the accounting period in question.