Section 1052 | Qualifying expenditure: in-house R&D

(1)Expenditure of a company is qualifying Chapter 2 expenditure if it meets each of conditions A to D in this section.

(2)Condition A is that the expenditure is attributable to relevant research and development undertaken by the company itself.

(3)Condition B is that the expenditure is—

(a)incurred on staffing costs (see section 1123),

(b)incurred on software, data licences, cloud computing services or consumable items (see section 1125),

(c)qualifying expenditure on externally provided workers (see section 1127), or

(d)incurred on relevant payments to the subjects of a clinical trial (see section 1140).

(4)Condition C is that the research and development is not contracted out to the company (see section 1133).

(5)Condition D is that the expenditure is not attributable to an exempt foreign permanent establishment (see section 1138B).

(6)See sections 1124, 1126 to 1126B and 1132 for provision about when expenditure within subsection (3)(a), (b) or (c) is attributable to relevant research and development.