Schedules
Schedule 3

Transitionals and savings
Part 9

Patent allowances

Expenditure incurred before 1st April 1986

Reduced writing-down allowance
98
1
If a person sells part of any patent rights in a chargeable period, and for that period U is greater than N, the writing-down allowance for that period is—
(U - N)/Y
where—U is the unrelieved qualifying expenditure for the chargeable period,N is the net proceeds of any sales of the patent rights which take place in the chargeable period (so far as those proceeds consist of capital sums), andY is the number of complete years of the writing-down period remaining at the beginning of the chargeable period.
2
If an amount is calculated under sub-paragraph (1) for a chargeable period, that amount is also the amount of the writing-down allowance for subsequent chargeable periods until another sale in a period for which U is greater than N causes a fresh calculation to be made under sub-paragraph (1).
3
If a chargeable period is more or less than a year, an allowance calculated under sub-paragraph (1) or (2) is proportionately increased or reduced.