VRR: qualifying expenditure: on sub-contracted R&D
FA02/SCH13/PARA6 - 11A company can claim VRR for its qualifying expenditure on R&D which it has sub-contracted to someone else.
Qualifying expenditure on sub-contracted R&D is payments made by a company (the principal) for R&D contracted out by it to another person (the sub-contractor) that satisfy certain conditions. For expenditure incurred on or before 31 July 2008 the treatment of the expenditure and the relief available differed depending upon who the sub-contractor. There were two situations: