Regulation 4 Association’s object

(1)

In relation to an accounting period, an Association shall be deemed to have as its object the undertaking of research and development which may lead to or facilitate an extension of any class or classes of trade if—

(a)

the Association’s constitutional document states that the object of the Association is the undertaking of research and development which may lead to or facilitate an extension of any class or classes of trade;

(b)

the stated object is the only object of the Association;

(c)

the Association satisfies the income spending condition in regulation 5;

(d)

regulation 6 (breach of income spending condition) does not apply;

(e)

regulation 15 (breach of arrangements for disseminating the results of research and development) does not apply; and

(f)

regulation 17 (breach of intellectual property requirements) does not apply.

This paragraph is subject to paragraph (2).

(2)

Where an Association’s constitutional document does not satisfy sub-paragraph (b) of paragraph (1) that sub-paragraph shall be deemed to be satisfied if—

(a)

in relation to the accounting period immediately preceding the first accounting period in relation to which these Regulations have effect, an Association is approved by the Secretary of State for the purposes of section 508, and

(b)

the object or objects stated in the constitutional document in relation to the accounting period for which the approval was given has not or have not in any way been altered or replaced.