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Curie Ltd is an Irish resident company involved in research and development (R&D) activities. The following expenditure was incurred during the year ended 31 December 2020 and included in the companys Statement of Financial Position as capital expenditure:

Revenue expenditure on R&D 75,000

Payment to unconnected third party for subcontracted R&D activities 65,000

Capitalised expenditure on R&D building 1,800,000

Capital expenditure on plant & machinery for the R&D laboratory 300,000

The revenue expenditure on R&D of 75,000 includes bank interest of 5,000, depreciation of 2,500 and insurance of 8,000. The company received a grant of 50,000 from a government agency towards the cost of the plant & machinery for the R&D laboratory. The plant & machinery is used for both R&D and other activities and it is estimated that 30% of the time it is used for R&D activities. The R&D activities will be carried on by the company in the building over the next 8 years and will represent approximately 35% of all activities carried on in the building. The capitalised expenditure of 1,800,000 noted above does not include the cost of acquiring the site of 200,000.

Required (i) Calculate the qualifying expenditure on research and development activities for the year ended 31 December 2020, and the total R&D tax credit that can be claimed, by the company.

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