Leyton International

New qualifying expenditure under the R&D Tax Credit

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22/02/2008

New qualifying expenditure under the R&D Tax Credit

Finance Act 2007: Introduction of payments to subcontracted unconnected parties as qualifying expenditure.

In addition to the existing provisions in relation to R&D undertaken by universities, expenditure incurred in regards to accounting periods ending on or after 1 January 2007 on sub-contracting R&D to unconnected parties will qualify up to a limit of 10% of qualifying R&D incurred by the company in any one year. To the condition that this subcontracted company does not claim a R&D tax credit for itself in respect of the expenditure. The subcontracted party must undertake the R&D work within the EEA.

Finance Act 2007 Part I Chapter 4 Section 46.

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