SCHEDULES

SCHEDULE 31Tax relief for expenditure on research and development

Part 6Expenditure on vaccine research etc: Schedule 13 to Finance Act 2002

24Relevant expenditure of sub-contractor: qualifying expenditure on externally provided workers

In paragraph 9 (relevant expenditure of sub-contractor) for sub-paragraph (3) (the second condition, that the expenditure must be incurred on staffing costs or consumable stores) substitute—

3

The second condition is that the expenditure—

a

is incurred on staffing costs,

b

is incurred on consumable stores, or

c

is qualifying expenditure on externally provided workers.

In applying for the purposes of this sub-paragraph (by virtue of paragraph 5 above)—

  • paragraph 5 of Schedule 20 to the Finance Act 2000 (meaning of “staffing costs”), or

  • paragraphs 8A to 8E of that Schedule (qualifying expenditure on externally provided workers),

  • the references to the company shall be read as references to the sub-contractor.