Section LH 7 — Income Tax Act 2007: Research and development activities and related terms

LH 7 Research and development activities and related terms Research and development activities (1) In this subpart, research and development activities of a person are— (a) systematic, investigative, and experimental activities that are performed for the purposes of acquiring new knowledge or creating new or improved materials, products, devices, processes, or services and that— (i) are intended to achieve an advance in science or technology by resolving scientific or technological uncertainty: (ii) involve an appreciable element of novelty: (b) other activities that are wholly or mainly for the purpose of, required for, and integral to, the performing of the activities referred to in paragraph (a). Systematic, investigative, and experimental activities (2) In this subpart, systematic, investigative, and experimental activities of a person are activities that— (a) are planned activities directed towards a particular purpose and following a logical progression of work involving hypothesis, experiment, observation, and evaluation; and (b) are not excluded under schedule 21 , part C (Expenditure and activities related to research and development). Scientific or technological uncertainty (3) In this subpart, scientific or technological uncertainty means uncertainty concerning the scientific or technological possibility of a thing, or the achievement of the thing in practice, created by an absence of relevant knowledge from the knowledge that is publicly available or deducible by a competent professional working in the field. Novelty (4) In this subpart, novelty means a development of technology or a new use of existing technology, by comparison with the knowledge of the technology that is publicly available on a reasonably accessible worldwide basis. Technology (5) In this subpart, technology means the practical application of scientific principles and knowledge. Defined in this Act: novelty , research and development activities , scientific or technological uncertainty , systematic, investigative, and experimental activities , technology Section LH 7: inserted, on 1 April 2008, by section 448 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section LH 7 compare note: repealed (with effect on 1 April 2008), on 6 October 2009, by section 329 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).