If payments are made to an unconnected person to carry out R&D activities, then the relief available to the company will be restricted to the greater of 15% or €100,000 of the expenditure incurred by the company itself on R&D activities and may only by claimed where the subcontractor does not claim this relief.
Relief is available in respect of payments to a university or institute to carry out R&D activities. The relief is restricted to the greater of 5% or €100,000 of the expenditure incurred by the company itself on R&D activities. E.g. if a company incurs €250,000 on R&D expenditure during the year and also pays €10,000 to a university to carry out R&D then as €10,000 is less than €12,500 (€250,000 x 5%) no restriction will apply and the full amount of €260,000 qualifies for relief.