Modifications etc. (not altering text)
C1Sch. 12 modified (with effect as specified in art. 2 of the commencing S.I. of the commencing S.I.) by Finance Act 2004 (c. 12), s. 53(2)(6); S.I. 2004/3268, art. 2
15(1)This paragraph applies where a company receives a payment refunding the whole or any part of—
(a)any qualifying expenditure on sub-contracted research and development (see paragraph 5),
(b)any qualifying expenditure on contributions to independent research and development (see paragraph 6), F1...
(c)any expenditure which is qualifying sub-contracted R&D expenditure by virtue of paragraph 10, [F2or
(d)any expenditure which is qualifying additional SME expenditure,]
in respect of which it obtains relief under this Schedule.
(2)The appropriate amount shall be treated as income of the company chargeable to tax under Case I of Schedule D for the accounting period in which the payment is made.
(3)Where, by virtue of paragraph 13(3) [F3(gross roll-up business)], the relief obtained in respect of the contribution or expenditure concerned is a deduction in computing for tax purposes the profits of [F4the gross roll-up business] of the company—
(a)sub-paragraph (2) does not apply, and
(b)the appropriate amount shall be treated as income referrable to [F5the gross roll-up business] which is chargeable to tax under Case VI of Schedule D for the accounting period in which the payment is made.
(4)For this purpose “the appropriate amount” means 25% of the payment.
Textual Amendments
F1Word in Sch. 12 para. 15(1) repealed (with effect in accordance with s. 168(3)(b) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 18, Sch. 43 Pt. 3(10)
F2Sch. 12 para. 15(1)(d) and preceding word inserted (with effect in accordance with s. 168(3)(b) of the amending Act) by Finance Act 2003 (c. 14), Sch. 31 para. 18
F3Words in Sch. 12 para. 15(3) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 74(3)(a) (with Sch. 7 Pt. 2)
F4Words in Sch. 12 para. 15(3) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 74(3)(b) (with Sch. 7 Pt. 2)
F5Words in Sch. 12 para. 15(3) substituted (with effect in accordance with s. 38(2) of the amending Act) by Finance Act 2007 (c. 11), Sch. 7 para. 74(3)(c) (with Sch. 7 Pt. 2)