Corporation Tax Act 2009 section 104L

Qualifying expenditure on contributions to independent R&D

Section 104L defines what counts as qualifying expenditure on contributions to independent research and development for the purposes of the large company R&D regime.

• Payments must be made to a qualifying body, an individual, or a firm, and must meet all of conditions A to E
• The payments must be for the purpose of funding R&D that is relevant to the company's trade (conditions A and B)
• The R&D being funded must not be contracted out by the recipient — it must be genuinely independent research (condition C)
• The company making the payment must not be connected to the individual or firm receiving it at the time the payment is made (conditions D and E)