Section 1052 — Corporation Tax Act 2009: Qualifying expenditure: in-house R&D

Qualifying expenditure: in-house R&D 1052 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.