CIRD89500 | R&D tax reliefs: Research and Development Expenditure Credit scheme: R&D contracted to an SME
From HM Revenue & Customs · Corporate Intangibles Research and Development Manual
-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.