Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Corporate Intangibles Research and Development Manual

From
HM Revenue & Customs
Updated
, see all updates

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:

  • sub-contractor a charity, university or scientific research organisation CIRD75525,
  • sub-contractor not a charity, university or scientific research organisation CIRD75550.