F1PART 8AProfits arising from the exploitation of patents etc

Annotations:
Amendments (Textual)
F1

Pt. 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)

CHAPTER 7Supplementary

Cost-sharing arrangements

357GCZCF2R&D undertaken or contracted out by another party to CSA

1

Subsection (2) applies if—

a

a company is a party to a cost-sharing arrangement, and

b

another party to the arrangement (“P”) undertakes research and development for the purpose of creating or developing the invention.

2

The research and development is to be treated for the purposes of sections 357BLC and 357BLD as having been contracted out by the company to P.

3

Subsection (4) applies if—

a

a company is a party to a cost-sharing arrangement,

b

another party to the arrangement (“P”) contracts out to another person (“A”) research and development for the purpose of creating or developing the invention, and

c

the company makes a payment under the arrangement in respect of that research and development (whether to P or to A).

4

For the purposes of sections 357BLC and 357BLD—

a

the company is to be treated as having contracted out to P research and development which is the same as that contracted out by P to A, and

b

the payment mentioned in subsection (3)(c) is to be treated as if it were a payment made to P in respect of the research and development the company is treated as having contracted out to P.

5

In this section “research and development” has the meaning given by section 1138.