CIRD89500 - R&D tax reliefs: large company scheme: R&D contracted to an SME

CTA09/Ss1063 - 1067

To qualify under the large company scheme the R&D must be contracted out to the SME by:

• a large company, or 
• a person otherwise than in the course of a trade profession or vocation the profits of which are chargeable to tax under Case I or II of Schedule D.

The expenditure must be relevant R&D for the SME (CIRD81400) and be revenue expenditure incurred on either:

• consumable items CIRD82300,
• consumable stores CIRD82450,
• software CIRD82500,
• staffing costs CIRD83000,
• externally provided workers CIRD84000,
• subjects of clinical trials CIRD84400.

Or, work contracted by the SME company to be directly carried out by:

• a qualifying body (see CIRD82200), or
• an individual, or
• a partnership, each member of which is an individual.