C1Part 3Trading income
F1CHAPTER 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
Large companies: qualifying R&D expenditure
104LQualifying expenditure on contributions to independent R&D
1
A company's “qualifying expenditure on contributions to independent research and development” means expenditure incurred by it in relation to which each of conditions A to E is met.
2
Condition A is that the expenditure is incurred in making payments to—
a
a qualifying body,
b
an individual, or
c
a firm, each member of which is an individual,
for the purpose of funding research and development carried on by the body, individual or firm concerned (“the funded R&D”).
3
Condition B is that the funded R&D is relevant research and development in relation to the company.
4
Condition C is that the funded R&D is not contracted out to the qualifying body, individual or firm concerned by another person.
5
Condition D is that, if the payment is made to an individual, the company is not connected with the individual when the payment is made.
6
Condition E is that, if the payment is made to a firm (other than a qualifying body), the company is not connected with any member of the firm when the payment is made.
Pt. 3 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 4(1)