[F1104HSubsidised qualifying expenditure on contracted out R&DU.K.
(1)A company's “subsidised qualifying expenditure on contracted out research and development” means expenditure—
(a)which is incurred by it in making the qualifying element of a sub-contractor payment (see sections 1134 to 1136), and
(b)in relation to which each of conditions A to E is met.
(2)Condition A is that the expenditure is subsidised.
(3)Condition B is that the sub-contractor is—
(a)a qualifying body,
(b)an individual, or
(c)a firm, each member of which is an individual.
(4)Condition C is that the body, individual or firm concerned undertakes the contracted out research and development itself.
(5)Condition D is that the expenditure is attributable to relevant research and development in relation to the company.
(6)Condition E is that the expenditure is not incurred by the company in carrying on activities which are contracted out to the company by any person.
(7)See sections 1124, 1126 [F2to 1126B] and 1132 for provision about when particular kinds of expenditure are attributable to relevant research and development.]
Textual Amendments
F1Pt. 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
F2Words in s. 104H(7) inserted (with effect in accordance with s. 28(7) of the amending Act) by Finance Act 2015 (c. 11), s. 28(4)(d)