C1Part 3Trading income

Annotations:
Modifications etc. (not altering text)

Chapter 5Trade profits: rules allowing deductions

Scientific research

87Expenses of research and development

1

If a company carrying on a trade incurs expenses of a revenue nature on research and development—

a

related to the trade, and

b

directly undertaken by or on behalf of the company,

a deduction is allowed for the expenses in calculating the profits of the trade.

2

For this purpose expenses incurred on research and development—

a

do not include expenses incurred in the acquisition of rights in, or arising out of, research and development, but

b

subject to that, include all expenses incurred in carrying out, or providing facilities for carrying out, research and development.

3

The reference in this section to research and development related to a trade includes—

a

research and development which may lead to or facilitate an extension of the trade, and

b

research and development of a medical nature which has a special relation to the welfare of workers employed in the trade.

4

The same expenses may not be brought into account under this section in relation to more than one trade.

5

In this section “research and development” has the meaning given by F1section 1138 of CTA 2010 and includes oil and gas exploration and appraisal.