Part 5

Miscellaneous income
Chapter 2

Receipts from intellectual property

Relief from income tax on patent income

Relief for expenses: patent income
600
1
Relief may be claimed under this section for—
a
inventor's expenses, and
b
patent application and maintenance expenses.
2
In this section “inventor's expenses” means expenses which—
a
have been incurred by an individual who, alone or jointly, devised an invention for which a patent has been granted, and
b
are attributable to devising it.
3
In this section “patent application and maintenance expenses” means expenses incurred by a person in connection with—
a
the grant or maintenance of a patent,
b
the extension of the term of a patent, or
c
a rejected or abandoned application for a patent,
but not incurred for the purposes of any trade carried on by the person.
4
Relief may not be claimed under this section for patent application and maintenance expenses unless they are expenses which would, if incurred for the purposes of a trade, have been allowable as a deduction in calculating the profits of the trade.
5
Relief may not be claimed under this section for any expenses if relief for them is given under—
a
section 582 (calculation of income for the purposes of the charge to tax on royalties etc.), or
b
any other provision of the Tax Acts.
6
This section needs to be read with section 603 (contributions to expenditure).