SCHEDULES

SCHEDULE 31 U.K. Tax relief for expenditure on research and development

Part 1 U.K. Small and medium-sized enterprises: Schedule 20 to Finance Act 2000

Required minimum aggregate expenditure: inclusion of new class of expenditure U.K.

3 (1) Paragraph 1 is also amended as follows. U.K.

(2) In sub-paragraph (1)(b) (requirement for minimum aggregate expenditure)—

(a) for “paragraph 3) and” substitute “ paragraph 3), ”; and

(b) after “Finance Act 2002)” insert “ and its qualifying additional SME expenditure (as defined in paragraph 10B of that Schedule) ”.

(3) In sub-paragraph (3A) (meaning of “deductible” in relation to qualifying sub-contracted R&D expenditure)—

(a) after “(1)(b)” insert “, each of the following—

(a)  ”;

(b) after “Finance Act 2002)” insert “ , and ”; and

(c) after the paragraph (a) so formed, insert the following paragraph—

“(b) a company’s qualifying additional SME expenditure (as defined in paragraph 10B of that Schedule),”.

Commencement Information

I1 Sch. 31 para. 3 has effect as specified by The Finance Act 2003, Section 168 (Appointed Day) Order 2003 (S.I. 2003/2497), art. 2