Part 13Additional relief for expenditure on research and development

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

Qualifying expenditure

1052Qualifying expenditure on in-house direct R&D

1

A company's β€œqualifying expenditure on in-house direct research and development” means expenditure incurred by it in relation to which each of F1conditions A, B, D and E is met.

2

Condition A is that the expenditure isβ€”

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).

3

Condition B is that the expenditure is attributable to relevant research and development undertaken by the company itself.

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5

Condition D is that the expenditure is not incurred by the company in carrying on activities which are contracted out to the company by any person.

6

Condition E is that the expenditure is not subsidised (see section 1138).

7

See sections 1124, 1126 and 1132 for provision about when expenditure within subsection (2)(a), (b) or (c) is attributable to relevant research and development.