Part 8 Patent allowances
Chapter 2 Qualifying expenditure
467 Qualifying expenditure
Expenditure is qualifying expenditure only if it is—
a
qualifying trade expenditure, or
b
qualifying non-trade expenditure.
468 Qualifying trade expenditure
1
“Qualifying trade expenditure” means capital expenditure incurred by a person on the purchase of patent rights for the purposes of a trade within the charge to tax carried on by the person.
2
The same expenditure may not be taken into account as qualifying trade expenditure in relation to more than one trade.
3
Expenditure incurred for the purposes of a trade by a person about to carry on the trade is to be treated as if it had been incurred by him on the first day on which he carries on the trade.
4
But subsection (3) does not apply if the person has before that day sold all the rights on the purchase of which the expenditure was incurred.
469 Qualifying non-trade expenditure
“Qualifying non-trade expenditure” means capital expenditure incurred by a person on the purchase of patent rights if—
a
any income receivable by the person in respect of the rights would be liable to tax, and
b
the expenditure is not qualifying trade expenditure.