1053Qualifying expenditure on contracted out R&DU.K.
(1)A company's “qualifying expenditure on contracted out research and development” means expenditure—
(a)which is incurred by it in making the qualifying element of a sub-contractor payment (see sections 1134 to 1136), and
(b)in relation to which each of conditions A to D is met.
(2)Condition A is that the expenditure is attributable to relevant research and development undertaken on behalf of the company.
(3)Condition B is that any intellectual property created as a result of the research and development to which the expenditure is attributable is, or will be, vested in the company (whether alone or with other persons).
(4)Condition C is that the expenditure is not incurred by the company in carrying on activities which are contracted out to the company by any person.
(5)Condition D is that the expenditure is not subsidised (see section 1138).
(6)See sections 1124, 1126 and 1132 for provision about when particular kinds of expenditure are attributable to relevant research and development.