Corporation Tax Act 2009 section 104H

Subsidised qualifying expenditure on contracted out R&D

Section 104H defines what counts as subsidised qualifying expenditure on contracted out research and development for SME companies.

• Expenditure on contracted out R&D may be classed as subsidised if it meets five conditions simultaneously
• The expenditure must itself be subsidised, and the sub-contractor must be a qualifying body, an individual, or a firm whose members are individuals
• The sub-contractor must actually carry out the contracted out R&D, and the expenditure must be attributable to relevant R&D in relation to the company
• The expenditure must not relate to activities that another person has contracted the company to perform