Section 1053A — Corporation Tax Act 2009: Qualifying expenditure: activity as contractor for irrelievable client

Qualifying expenditure: activity as contractor for irrelievable client 1053A 1 Expenditure of a company is qualifying Chapter 2 expenditure if it meets conditions A, B and C in this section.

2 Condition A is that the expenditure is attributable to relevant research and development contracted out to the company (see section 1133 ).

3 Condition B is that subsection (4) is satisfied by each person by whom the research and development is contracted out to the company.

4 A person satisfies this subsection if—

a the person is an ineligible company (see section 1142), or b the person is not, in relation to the contracting out of the research and development by that person, acting in the course of a trade, profession or vocation within the charge to tax.

5 Condition C is that the expenditure would, but for the fact that the research and development is contracted out to the company, be qualifying Chapter 2 expenditure by virtue of section 1052 or 1053 .