118. Research and development allowances.

Research and development allowances are available1 if a person incurs qualifying expenditure on research and development2.

Expenditure on research and development includes all expenditure incurred for carrying out research and development, or providing facilities for carrying out research and development, but does not include expenditure incurred in the acquisition of rights in research and development or rights arising out of research and development3. Expenditure on research and development does not include expenditure on the provision of a dwelling; but if part of a building consists of a dwelling and the rest of the building is used for research and development,