SCHEDULES
SCHEDULE 13Tax relief for expenditure on vaccine research etc
Part 1Entitlement to relief
6Qualifying expenditure on sub-contracted research and development
1
Paragraphs 7 to 11 make provision for determining the qualifying expenditure of a company on sub-contracted research and development.
This is subject to sub-paragraph (3).
2
For the purposes of those paragraphs a company (“the principal”) incurs expenditure on sub-contracted research and development if it makes a payment (a “sub-contractor payment”) to another person (“the sub-contractor”) in respect of research and development contracted out by the company to that person.
3
Where the sub-contractor is—
a
a charity (within the meaning of section 506(1) of the Taxes Act 1988),
b
a university, or
c
an Association of a description specified in section 508 of that Act (scientific research organisations),
paragraphs 7(1) and 8 to 11 do not apply and expenditure of the principal on sub-contracted expenditure is qualifying expenditure if it satisfies the conditions of paragraph 7(2) to (6).