Section 1136 | Qualifying element of contractor payment: other cases

(1)This section applies to a contractor payment to which section 1134 does not apply.

(2)The qualifying element of the payment is 65% of the relevant portion of the payment.

(3)The relevant portion is the portion that is incurred in respect of—

(a)research and development that is undertaken in the United Kingdom, or

(b)research and development that is undertaken outside the United Kingdom and to which section 1138A applies.

(4)An apportionment of expenditure necessary for the purposes of this section is to be made on a just and reasonable basis.