Finance Act 2002 (c. 23)

SCHEDULES

SCHEDULE 13 Tax relief for expenditure on vaccine research etc

Part 1 Entitlement to relief

Treatment of sub-contractor payment in other cases

11 Where the principal makes a sub-contractor payment and—

(a) the principal and the sub-contractor are not connected persons, and

(b) no election is made under paragraph 10 (election for connected persons treatment),

65% of the amount of the sub-contractor payment is treated as qualifying expenditure on sub-contracted research and development.

This is subject to paragraph 7 (conditions that must be satisfied by qualifying expenditure on sub-contracted R&D).