http://www.legislation.gov.uk/id/ukpga/2009/4

Part 13Additional relief for expenditure on research and development

Chapter 2Relief for SMEs: cost of R&D incurred by SME

Qualifying expenditure

1051Qualifying Chapter 2 expenditure

For the purposes of this Part a company's “qualifying Chapter 2 expenditure” means—

(a)

its qualifying expenditure on in-house direct research and development (see section 1052), and

(b)

its qualifying expenditure on contracted out research and development (see section 1053).