Income Tax (Trading and Other Income) Act 2005 section 88

Payments to research associations, universities etc.

Section 88 provides a tax deduction for payments made by a trader to approved research associations, universities, and similar institutions that carry out scientific research relevant to the trader's class of trade.

• Payments to exempt research associations undertaking R&D that may extend the trader's class of trade, or to approved universities and similar institutions for related scientific research, are deductible in calculating trading profits
• The deduction is given in the accounting period in which the payment is actually made
• Scientific research includes activities that may extend trades of the relevant class, as well as medical research with a special relation to the welfare of workers in that class of trade
• The same payment cannot be claimed as a deduction against more than one trade, and the relief does not apply to professions or vocations