| "Meaning of "research and development". |
837A. - (1) The following provisions have effect for the purposes of, and subject to, the provisions of the Tax Acts which apply this section.
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(2) "Research and development" means activities that fall to be treated as research and development in accordance with normal accounting practice.
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This is subject to regulations under subsection (3) below.
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(3) The Treasury may by regulations provide-
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(a) that such activities as may be prescribed are not "research and development" for the purposes of this section, and |
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(b) that such other activities as may be prescribed are "research and development" for those purposes. |
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(4) Regulations under subsection (3) above may-
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(a) make provision by reference to guidelines issued (whether before or after the coming into force of this section) by the Secretary of State, and |
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(b) make such supplementary, incidental, consequential or transitional provision as appears to the Treasury to be necessary or expedient. |
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(5) In subsection (2) above "normal accounting practice" means normal accounting practice in relation to the accounts of companies incorporated in a part of the United Kingdom.
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(6) Unless otherwise expressly provided, "research and development" does not include oil and gas exploration and appraisal.".
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