CIRD81470 | R&D tax relief: conditions to be satisfied: subcontracted R&D

What is considered to be subcontracting is dealt with at CIRD84250.

CTA09/Ss1052(5) and 1053(4) - SME scheme

One of the conditions for a company to make a claim under the SME scheme is that the expenditure is not incurred in carrying on R&D activities as a subcontractor.

In some cases the SME company may still be able to make a claim under the Research and Development Expenditure Credit Scheme (CTA 2009/s104C to S104E). See CIRD89750.

CTA09/Ss 104C,104J and 104K – Research and Development Expenditure Credit

In order to claim RDEC a company which has been contracted to carry out relevant R&D must have been contracted by either:

• A large company, or

• A person otherwise than in the course of a chargeable trade.