SCHEDULES

SCHEDULE 31Tax relief for expenditure on research and development

Part 3Work sub-contracted to SMEs: Part 2 of Schedule 12 to Finance Act 2002

R&D directly undertaken by SME: qualifying expenditure on externally provided workers

14

In paragraph 9 (expenditure on research and development directly undertaken by SME) for sub-paragraph (2) (the second condition, that the expenditure must be incurred on staffing costs or consumable stores) substitute—

2

The second condition is that the expenditure—

a

is incurred on staffing costs,

b

is incurred on consumable stores, or

c

is qualifying expenditure on externally provided workers.