[F1[F2357BLDQualifying expenditure on relevant R&D sub-contracted to connected personsU.K.
(1)In section 357BLA, the company's “qualifying expenditure on relevant R&D sub-contracted to connected persons” means the total of—
(a)any expenditure which is “qualifying expenditure on relevant R&D sub-contracted to connected persons” as a result of section 357BLB(4) or 357BLC(3) (certain expenditure attributed to company's foreign permanent establishments), and
(b)the expenditure incurred by the company during the relevant period in making payments within subsection (2).
(2)A payment is within this subsection if—
(a)it is made to a person in respect of relevant research and development contracted out by the company to the person, and
(b)the company and the person are connected (within the meaning given by section 1122).
(3)Where a payment is made to a person in respect of relevant research and development contracted out to the person and in respect of other matters, so much of the payment as is properly attributable to other matters is to be disregarded for the purposes of this section.]]
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)