Clause 4

For the purpose of ascertaining the income of any person carrying on a manufacturing trade or business, the following expenditure incurred on or after 1st April, 1979 (other than any amount which is allowable as a deduction under section 14) by that person shall be allowed as a deduction: —

expenditure incurred on research and development undertaken directly by him and related to that trade or business (except to the extent that it is capital expenditure on plant, machinery, land or buildings or on alterations, additions or extensions to buildings or in the acquisition of rights in or arising out of research and development); and

payments made by that person to an approved research and development organisation for undertaking on his behalf research and development related to that trade or business.(2) For the purposes of this section —

“approved” means approved by the Minister or such person as he may appoint;

any expenditure incurred by a person prior to the commencement of his manufacturing trade or business shall be deemed to have been incurred by that person on the first day on which he carries on that trade or business.”.