25(1)This paragraph applies where a company receives a payment refunding the whole or any part of—
(a)any qualifying expenditure on sub-contracted research and development to which paragraph 6(3) applies (research sub-contracted to charities, universities and scientific research organisations), or
(b)any qualifying expenditure on contributions to independent research and development (see paragraph 12),
in respect of which it obtains relief under this Schedule.
(2)The appropriate amount shall be treated as income of the company chargeable to tax under Case I of Schedule D for the accounting period in which the payment is made.
(3)Where, by virtue paragraph 23(3) (profits of life assurance business chargeable to tax under Case VI of Schedule D), the relief obtained in respect of the contribution or expenditure concerned is a deduction in computing for tax purposes the profits of a part of the life assurance business of the company—
(a)sub-paragraph (2) does not apply, and
(b)the appropriate amount shall be treated as income referrable to that part which is chargeable to tax under Case VI of Schedule D for the accounting period in which the payment is made.
(4)For this purpose “the appropriate amount” means—
(a)where the company qualifies as a small or medium-sized enterprise in the accounting period in which it obtains the relief—
(i)if it is entitled to relief under Schedule 20 to the Finance Act 2000 (c. 17) in respect of the qualifying expenditure refunded, 50% of the payment, and
(ii)in any other case, 150% of the payment; and
(b)where the company does not so qualify—
(i)if the relief falls within paragraph 21(2) (relief for qualifying expenditure deductible in computing profits for tax purposes), 50% of the payment, and
(ii)in any other case, 150% of the payment.