F1PART 8AProfits arising from the exploitation of patents etc
F2CHAPTER 2ARelevant IP profits: cases mentioned in section 357A(6)
Pt. 8A Chs. 2A, 2B inserted (with effect in accordance with s. 64(7) of the amending Act) by Finance Act 2016 (c. 24), s. 64(3)
R&D fraction
357BLEAF3Cases where the company is a party to a CSA
1
Subsection (2) applies if during the relevant period—
a
the company is a party to a cost-sharing arrangement (see section 357GC),
b
the company incurs expenditure in making payments under the arrangement that are within section 357BLC(2) by reason of section 357GCZC, and
c
persons who are not connected with the company make payments under the arrangement to the company in respect of relevant research and development undertaken or contracted out by the company.
2
So much of the expenditure referred to in paragraph (b) of subsection (1) as is equal to the amount of the payments referred to in paragraph (c) of that subsection is to be disregarded in determining the R&D fraction for the sub-stream.
3
Subsection (4) applies if during the relevant period—
a
the company is a party to a cost-sharing arrangement,
b
the company incurs expenditure in making payments under the arrangement that are within subsection (5), and
c
the company receives payments under the arrangement that are within subsection (6).
4
So much of the expenditure referred to in paragraph (b) of subsection (3) as is equal to the amount of the payments referred to in paragraph (c) of that subsection is to be disregarded in determining the R&D fraction for the sub-stream.
5
A payment is within this subsection if—
a
it is within section 357BLD(2) by reason of section 357GCZC, or
b
it is within section 357BLE(2) or (3) by reason of section 357GCZD.
6
A payment is within this subsection if—
a
it is made by persons connected with the company in respect of relevant research and development undertaken or contracted out by the company, or
b
it is made in respect of an assignment to the company of a relevant qualifying IP right or a grant or transfer to the company of an exclusive licence in respect of such a right.
Pt. 8A inserted (with effect in accordance with Sch. 2 paras. 7, 8 of the amending Act) by Finance Act 2012 (c. 14), Sch. 2 para. 1(1)