Section 1006 | Meaning of “research and development”

(1)This section has effect for the purposes of the provisions of the Income Tax Acts which apply this section.

(2)“Research and development” means activities that fall to be treated as research and development in accordance with generally accepted accounting practice.This is subject to subsection (3).

(3)The Treasury may by regulations specify activities which—

(a)are to be treated as being “research and development” for the purposes of this section, or

(b)are to be treated as not being “research and development” for the purposes of this section.

(4)The regulations may—

(a)make provision by reference to guidelines issued by the Secretary of State, and

(b)contain incidental, supplemental, consequential and transitional provision and savings.

(5)Unless otherwise expressly provided, “research and development” does not include oil and gas exploration and appraisal.