Section 1006 — Income Tax Act 2007: Meaning of “research and development”

Meaning of “research and development” 1006 1 This section has effect for the purposes of the provisions of the Income Tax Acts which apply this section. 2 “ Research and development ” means activities that fall to be treated as research and development in accordance with generally accepted accounting practice. This is subject to subsection (3).

3 The Treasury may by regulations specify activities which—

a are to be treated as being “ research and development ” for the purposes of this section, or b are to be treated as not being “ research and development ” for the purposes of this section.

4 The regulations may—

a make provision by reference to guidelines issued by the Secretary of State, and b contain incidental, supplemental, consequential and transitional provision and savings.

5 Unless otherwise expressly provided, “ research and development ” does not include oil and gas exploration and appraisal.