A 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 (
theprincipal) 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:
