Item 33: [Research and development by maItem 33: [Research and development by manufacturer etc.] [R]

#### Item 33: \[Research and development by manufacturer etc.\] \[R\] (1) Goods for use by a person (the exemption user) mainly in carrying out one or more of the following activities: (a) an eligible R&D activity that is carried out mainly for one or more of the following purposes: (i) creating new or improved goods that will be, or are likely to be, qualifying goods of the exemption user; (ii) creating a new or improved activity that will be, or is likely to be, carried out by the exemption user and would be covered by this Item or by exemption Item 1, 2, 18, 23, 28, 29, 30 or 35; (iii) acquiring new knowledge mainly for either of those purposes; (b) an activity carried out mainly for a purpose directly related to an activity covered by paragraph (a); (c) an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (a) or (b); (d) an activity that is ancillary (as defined by section 10) to one or more activities covered by paragraph (c). (2) Eligible raw materials and parts (as defined by section 11) in relation to activities covered by subitem (1). (3) This Item does not cover: (a) generally‑excluded property (as defined by section 12); (b) a general‑purpose road vehicle, unless it is for use exclusively: (i) within premises controlled by the exemption user and used by the exemption user mainly in carrying out one or more activities covered by subitem (1); or (ii) in going between adjacent premises covered by subparagraph (i); or (iii) for a combination of both; (c) goods for use mainly in the development or duplication of computer programs that will be, or are likely to be, tax‑advantaged computer programs (not counting programs that will be, or are likely to be, mainly for use by the exemption user in carrying out an activity covered by this Item or by exemption Item 1, 2, 18, 23, 28, 29, 30 or 35). > Note: \[See also section 13, which sometimes denies exemption if the exemption goods are for use in connection with property covered by subitem (3).\] (4) In this Item, eligible R&D activity means a systematic, investigative or experimental activity that involves innovation or technical risk, but does not include: (a) market research, market testing or market development, or sales promotion (including consumer surveys); (b) management studies or efficiency surveys; (c) feasibility studies.