Part 13Additional relief for expenditure on research and development
Chapter 7F1Relief for large companies: vaccine research etc
Qualifying expenditure
1101Qualifying expenditure on in-house direct R&D
1
A company's “qualifying expenditure on in-house direct research and development” means expenditure incurred by it in relation to which each of conditions A to E is met.
2
Condition A is that the expenditure is attributable to qualifying R&D activity (see section 1086) undertaken by the company itself.
3
Condition B is that the qualifying R&D activity to which the expenditure is attributable is relevant research and development in relation to the company.
4
Condition C 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).
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 (4)(a), (b) or (c) is attributable to relevant research and development.
Pt. 13 Ch. 7 heading substituted (with effect in accordance with Sch. 3 para. 38 of the amending Act) by Finance Act 2012 (c. 14), Sch. 3 para. 30