Part 13Additional relief for expenditure on research and development
Chapter 4Relief for SMEs: subsidised and capped expenditure on R&D
Qualifying expenditure
1072Subsidised qualifying expenditure on contracted out R&D
1
A company’s “subsidised qualifying expenditure on contracted out research and development” means expenditure—
a
which is incurred by it in making the qualifying element of a sub-contractor payment (see sections 1134 to 1136), and
b
in relation to which each of conditions A to F is met.
2
Condition A is that the expenditure is subsidised (see section 1138).
3
Condition B is that the sub-contractor is—
a
a qualifying body,
b
an individual, or
c
a firm, each member of which is an individual.
4
Condition C is that the body, individual or firm concerned undertakes the contracted out research and development itself.
5
Condition D is that the expenditure is attributable to relevant research and development in relation to the company.
6
Condition E is that any intellectual property created as a result of the research and development to which the expenditure is attributable is, or will be, vested in the company (whether alone or with other persons).
7
Condition F is that the expenditure is not incurred by the company in carrying on activities which are contracted out to the company by any person.
8
Sections 1124, 1126 and 1132 contain provision about when particular kinds of expenditure are attributable to relevant research and development.