1138“Subsidised expenditure”
(1)For the purposes of this Part a company’s expenditure is treated as subsidised—
(a)if a notified State aid is, or has been, obtained in respect of—
(i)the whole or part of the expenditure, or
(ii)any other expenditure (whenever incurred) attributable to the same research and development project,
(b)to the extent that a grant or subsidy (other than a notified State aid) is obtained in respect of the expenditure,
(c)to the extent that it is otherwise met directly or indirectly by a person other than the company.
(2)In this section “notified State aid” means a State aid notified to and approved by the European Commission.
(3)For this purpose the following are not State aids—
(a)relief under this Part, and
(b)R&D tax credits under this Part.
(4)For the purposes of this Part a notified State aid, grant, subsidy or payment that is not allocated to particular expenditure is to be allocated to expenditure of the recipient on a just and reasonable basis.