Part 13... expenditure on research and development
Chapter 2Relief for loss-making, R&D-intensive SMEs
Qualifying expenditure
F11052Qualifying expenditure: in-house R&D
(1)
Expenditure of a company is qualifying Chapter 2 expenditure if it meets each of conditions A to D in this section.
(2)
Condition A is that the expenditure is attributable to relevant research and development undertaken by the company itself.
(3)
Condition B is that the expenditure is—
(a)
incurred on staffing costs (see section 1123),
(b)
incurred on software, data licences, cloud computing services or consumable items (see section 1125),
(c)
qualifying expenditure on externally provided workers (see section 1127), or
(d)
incurred on relevant payments to the subjects of a clinical trial (see section 1140).
(4)
Condition C is that the research and development is not contracted out to the company (see section 1133).
(5)
Condition D is that the expenditure is not attributable to an exempt foreign permanent establishment (see section 1138B).