Section 1053 | Qualifying expenditure: payments for contracted out 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 contracted out by the company (see section 1133).

(3)Condition B is that the research and development is not also contracted out to the company (see section 1133).

(4)Condition C is that the expenditure is incurred in making the qualifying element of a contractor payment (see sections 1133 to 1136).

(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 particular kinds of expenditure are attributable to relevant research and development.