CIRD89500 | R&D tax reliefs: Research and Development Expenditure Credit scheme: R&D contracted to an SME

-CTA09/S104A(3)(a)

To qualify under the Research and Development Expenditure Credit scheme the R&D must be contracted out to the SME by:

• a large company, or

• a person otherwise than in the course of a trade profession or vocation the profits of which are chargeable to tax under Case I or II of Schedule D.

The expenditure must be relevant R&D for the SME (CIRD81400) and be revenue expenditure incurred on either:

• consumable items CIRD82300,

• consumable stores CIRD82450,

• software CIRD82500,

• staffing costs CIRD83000,

• externally provided workers CIRD84000,

• subjects of clinical trials CIRD84400.

Or, work contracted by the SME company to be directly carried out by:

• a qualifying body (see CIRD82200), or

• an individual, or

• a partnership, each member of which is an individual.