Definition
A qualifying body, for R&D tax relief purposes, is an organisation listed in section 1142 of the Corporation Tax Act 2009. The list includes universities, charities, scientific research associations, health service bodies and specified public bodies. Payments by a company to a qualifying body for R&D work carried out on its behalf are treated as qualifying subcontractor expenditure, with 65% of the payment eligible under the standard rule. The UK-workforce rules introduced under the merged scheme contain specific carve-outs for payments to qualifying bodies.
How HMRC defines it
HMRC guidance on qualifying bodies is at CIRD81800 and CIRD84200 of the CIRD Manual. The statutory list is at section 1142 of the Corporation Tax Act 2009. The Secretary of State may add further organisations by order.
Practical example
A medical device company contracts with a UK university to carry out a series of biocompatibility studies, paying the institution £120,000 during the accounting period. The university is a qualifying body, so 65% of the payment, or £78,000, is included as qualifying subcontractor expenditure in the R&D claim.