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HMRC internal manual

Venture Capital Schemes Manual

From
HM Revenue & Customs
Updated
, see all updates

The operating costs conditions

The first operating costs condition is that the company must have spent at least 15% of its relevant operating costs on research and development or innovation in one of the three relevant years preceding the date of the investment.

The second operating costs condition is that the company must have spent at least 10% of its relevant operating costs on research and development or innovation in each of the three relevant years preceding the date of the investment.

Where the company is the parent company of a group of companies the relevant operating costs to be taken into account include the costs of any subsidiary of the company at the time of the investment.