Finance Act 2002 (c. 23)

SCHEDULES

SCHEDULE 12 Tax relief for expenditure on research and development

Part 2 Entitlement to relief for R&D expenditure: work subcontracted to small or medium-sized enterprise

Expenditure on research and development directly undertaken by the SME

9 (1) The first condition of this paragraph is that the expenditure is incurred on research and development directly undertaken by the SME.

(2) The second condition is that the expenditure is incurred—

(a) on staffing costs, or

(b) on consumable stores.

(3) The third condition is that the expenditure is attributable to relevant research and development in relation to the SME.

(4) The fourth condition is that the expenditure is not of a capital nature.