ERSM100400 - University Spin-outs
Definitions: ‘Research institution’
Under ITEPA03/S457 this can be:
- any publicly funded university or other institution as defined in section 41(2) of the Higher Education Act 2004 or
- any institution that carries out research activities otherwise than for profit and that is neither controlled nor wholly or mainly funded by a person who carries on activities for profit.
There is provision for this definition to be amended if a RI comes to light that is not covered by the legislation.
Examples 13
The following examples illustrate the operation of these rules:
- A medical charity sets up a subsidiary for research. This will be a RI within s457(1)(b);
- A multinational pharmaceuticals group has several research subsidiaries. They often work in conjunction with university research departments. None of the subsidiaries will qualify as a RI because they are controlled by a person (including, as in this case, a company) which “carries on activities for profit”.
- A French university has potentially commercial research. It will be a RI. This may be relevant if, for example, a person involved in the research is from the UK on short-term secondment or the spin-out activity is part located in the UK for whatever reason.