Section 87 — Corporation Tax Act 2009: Expenses of research and development

Expenses of research and development 87 1 If a company carrying on a trade incurs expenses of a revenue nature on research and development—

a related to the trade, and b directly undertaken by or on behalf of the company, a deduction is allowed for the expenses in calculating the profits of the trade.

2 For this purpose expenses incurred on research and development—

a do not include expenses incurred in the acquisition of rights in, or arising out of, research and development, but b subject to that, include all expenses incurred in carrying out, or providing facilities for carrying out, research and development.

3 The reference in this section to research and development related to a trade includes—

a research and development which may lead to or facilitate an extension of the trade, and b research and development of a medical nature which has a special relation to the welfare of workers employed in the trade.

4 The same expenses may not be brought into account under this section in relation to more than one trade.

5 In this section “ research and development ” has the meaning given by section 1138 of CTA 2010 and includes oil and gas exploration and appraisal.