SCHEDULES

SCHEDULE 31Tax relief for expenditure on research and development

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

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

24In 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.”.