C1Part 3Trading income
F2CHAPTER 6ATrade profits: R&D expenditure credits
Pt. 3 Ch. 6A inserted (with effect in accordance with Sch. 15 para. 27 of the amending Act) by Finance Act 2013 (c. 29), Sch. 15 para. 1
SMEs: subsidised qualifying expenditure
104GSubsidised qualifying expenditure on in-house direct R&D
1
A company's “subsidised qualifying expenditure on in-house direct research and development” means expenditure incurred by it in relation to which each of conditions A to D is met.
2
Condition A is that the expenditure is subsidised.
3
Condition B is that the expenditure is—
a
incurred on staffing costs (see section 1123),
b
incurred on software F3, data licences, cloud computing services or consumable items (see section 1125),
c
qualifying expenditure on externally provided workers (see section 1127), or
d
incurred on relevant payments to the subjects of a clinical trial (see section 1140).
4
Condition C is that the expenditure is attributable to relevant research and development undertaken by the company itself.
5
Condition D is that the expenditure is not incurred by the company in carrying on activities which are contracted out to the company by any person.
6
See sections 1124, 1126 F1to 1126B and 1132 for provision about when expenditure within subsection (3)(a), (b) or (c) is attributable to relevant research and development.
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)