Corporation Tax Act 2009

Staffing costs

121 (1) In relation to expenditure incurred before 27 September 2003, section 1124 applies, for the purposes of Chapters 2 and 7 of Part 13, with the modification in sub-paragraph (3).

(2) In relation to expenditure incurred before 9 April 2003, section 1124 applies, for the purposes of Chapters 3 to 5 of Part 13, with the modification in sub-paragraph (3).

(3) For subsections (3) and (4) substitute—

“(3) In the case of a director (“D”) or employee (“E”) partly engaged directly and actively in relevant research and development the following rules apply—

(a) if the time D or E spends so engaged is less than 20% of D’s or E’s total working time, none of the staffing costs relating to D or E is treated as attributable to relevant research and development,

(b) if the time D or E spends so engaged is more than 80% of D’s or E’s total working time, the whole of the staffing costs relating to D or E is treated as attributable to relevant research and development,

(c) in any other case, an appropriate proportion of the staffing costs relating to D or E is treated as attributable to relevant research and development.”