[F1[F2357BLAThe R&D fractionU.K.
(1)The R&D fraction for the sub-stream is the lesser of 1 and—
where—
D is the company's qualifying expenditure on relevant R&D undertaken in-house (see section 357BLB),
S1 is the company's qualifying expenditure on relevant R&D sub-contracted to unconnected persons (see section 357BLC),
S2 is the company's qualifying expenditure on relevant R&D sub-contracted to connected persons (see section 357BLD), and
A is the company's qualifying expenditure on the acquisition of relevant qualifying IP rights (see section 357BLE).
(2)This section is subject to section 357BLH (R&D fraction: increase for exceptional circumstances).]]
Textual Amendments
F1Pt. 8A inserted (with effect in accordance with Sch. 2 paras. 7, 8 of the amending Act) by Finance Act 2012 (c. 14), Sch. 2 para. 1(1)
F2Pt. 8A Chs. 2A, 2B inserted (with effect in accordance with s. 64(7) of the amending Act) by Finance Act 2016 (c. 24), s. 64(3)