Section 357BD — Corporation Tax Act 2010: Meaning of “qualifying development”

Meaning of “qualifying development” 357BD 1 A company carries out “ qualifying development ” in relation to a right if—

a it creates, or significantly contributes to the creation of, the invention, or b it performs a significant amount of activity for the purposes of developing the invention or any item or process incorporating the invention.

2 The reference in subsection (1)(b) to developing the invention includes developing ways in which the invention may be used or applied.

3 For the purposes of section 357BC it does not matter whether the qualifying development was carried out before or after—

a the company, or b where the company is a member of a group, any member of the group, became the holder of the right or (as the case may be) an exclusive licence in respect of the right.