Section 252A | [ Meaning Of “Knowledge-Intensive Company”] | Income Tax Act 2007 C3

[252A Meaning of “knowledge-intensive company”]

Income Tax Act 2007 (2007 c 3) | Legislation

[252A Meaning of “knowledge-intensive company”]

[(1) For the purposes of this Part, the issuing company is a “knowledge-intensive company” at the time the relevant shares are issued if the company meets—

(a) one or both of the operating costs conditions (see subsections (2) and (3)), and

(b) one or both of—

(i) the innovation condition (see subsection (5)), and

(ii) the skilled employee condition (see subsection (8)).

(2) The first operating costs condition is that in at least one of the relevant three preceding years at least 15% of the relevant operating costs constituted expenditure on research and development or innovation.

(3) The second operating costs condition is that in each of the relevant three preceding years at least 10% of the relevant operating costs constituted such expenditure.

(4) In subsections (2) and (3)—

“relevant operating costs” means—

(a) if the issuing company is a single company at the time the relevant shares are issued, the operating costs of that company, and

(b) if the issuing company is a parent company at the time the relevant shares are issued, the sum of—

(i) the operating costs of the issuing company, and

(ii) the operating costs of each company