# Corporation Tax Act 2010, Section 357BLA: The R&D fraction


(1) The R&D fraction for the sub-stream is the lesser of 1 and—
( D + S1 ) × 1.3 D + S1 + S2 + Awhere—
D is the company's qualifying expenditure on relevant R&D undertaken in-house (see section 357BLB),
S1 is the company's qualifying expenditure on relevant R&D sub-contracted to unconnected persons (see section 357BLC),
S2 is the company's qualifying expenditure on relevant R&D sub-contracted to connected persons (see section 357BLD), and
A is the company's qualifying expenditure on the acquisition of relevant qualifying IP rights (see section 357BLE).
(2) This section is subject to section 357BLH (R&D fraction: increase for exceptional circumstances).

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Source: https://www.legislation.gov.uk/ukpga/2010/4/section/357BLA (the official version)
Page: https://openlegislation.uk/corporation-tax-act-2010/section-357BLA
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.