(1)This section applies if a company receives a payment (“the refund”) refunding the whole or any part of expenditure—
(a)to which subsection (2) applies, and
(b)in respect of which the company obtains relief under Chapter 3, 4 or 5.
(2)This subsection applies to—
(a)qualifying Chapter 3 expenditure to which section 1067 applies (expenditure on sub-contracted R&D not undertaken in-house),
(b)qualifying Chapter 4 expenditure (subsidised expenditure on R&D),
(c)capped R&D expenditure, and
(d)qualifying Chapter 5 expenditure which is—
(i)qualifying expenditure on contracted out research and development under section 1078, or
(ii)qualifying expenditure on contributions to independent research and development under section 1079.
(3)30% of the refund is to be treated as income of the company chargeable to tax under Chapter 2 of Part 3 for the accounting period in which the refund is made.
(4)But subsection (3) does not apply if, because of section 1080(4) (gross roll-up business), the relief obtained in respect of the expenditure concerned is an additional deduction in calculating for corporation tax purposes the profits of gross roll-up business of the company.
(5)In that case 30% of the refund is to be treated as income which is—
(a)referable to the gross roll-up business, and
(b)chargeable, for the accounting period in which the refund is made, under the charge to corporation tax on income.