Part 1 U.K.Income tax, corporation tax and capital gains tax

Income tax and corporation taxU.K.

13R&D relief for SMEs: removal of intellectual property conditionU.K.

(1)Part 13 of CTA 2009 (additional relief for expenditure on research and development) is amended as follows.

(2)In section 1052 (qualifying expenditure on in-house direct R&D)—

(a)in subsection (1), for “conditions A to E” substitute “ conditions A, B, D and E ”, and

(b)omit subsection (4) (condition C: intellectual property created as result of research and development to which expenditure is attributable to be vested in company).

(3)In section 1053 (qualifying expenditure on contracted out R&D)—

(a)in subsection (1)(b), for “conditions A to D” substitute “ conditions A, C and D ”, and

(b)omit subsection (3) (condition B: same intellectual property condition).

F1(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)Omit section 1139 (meaning of “intellectual property”).

(7)In Schedule 4 to CTA 2009 (index of defined expressions), omit the entry relating to “intellectual property (in Part 13)”.

(8)The amendments made by this section have effect in relation to expenditure incurred by a company in an accounting period ending on or after 9 December 2009.