SCHEDULES

SCHEDULE 2Relief for research and development: subjects of clinical trials

Amendments to Schedule 20 to FA 2000

1

1

Schedule 20 to FA 2000 (tax relief for expenditure on research and development by small or medium-sized enterprises) is amended as follows.

2

In paragraph 3 (qualifying R&D expenditure), in sub-paragraph (4), after paragraph (b) insert—

ba

is incurred on relevant payments to the subjects of a clinical trial (see paragraph 6A),

3

After paragraph 6 (expenditure on software or consumable items), insert—

Relevant payments to subjects of clinical trials

6A

1

For the purposes of this Schedule “relevant payment”, in relation to a subject of a clinical trial, means a payment made to him for participating in the trial.

2

For the purposes of this Schedule “clinical trial” means an investigation in human subjects undertaken in connection with the development of a health care treatment or procedure.

4

In paragraph 10 (treatment of expenditure where company and sub-contractor are connected persons), in sub-paragraph (2)(a)(iii), for “or on software or consumable items” substitute “ , on software or consumable items or on relevant payments to the subjects of a clinical trial ”.