PART 8A

Profits arising from the exploitation of patents etc
CHAPTER 2A

Relevant IP profits: cases mentioned in section 357A(6)

Routine return figure

Routine deductions
357BJA
1
For the purposes of this Part, “
routine deductions
” means deductions falling within any of the Heads set out in—
a
subsection (2) (capital allowances),
b
subsection (3) (costs of premises),
c
subsection (4) (personnel costs),
d
subsection (5) (plant and machinery costs),
e
subsection (6) (professional services), and
f
subsection (7) (miscellaneous services).
This is subject to section 357BJB (deductions that are not routine deductions).
2
Head 1 is any allowances under
CAA
2001.
3
Head 2 is any deductions made by the company in respect of any premises occupied by the company.
4
Head 3 is any deductions made by the company in respect of—
a
any director or employee of the company, or
b
any externally provided workers.
5
Head 4 is any deductions made by the company in respect of any plant or machinery used by the company.
6
Head 5 is any deductions made by the company in respect of any of the following services—
a
legal services, other than IP-related services;
b
financial services, including—
i
insurance services, and
ii
valuation or actuarial services;
c
services provided in connection with the administration or management of the company's directors and employees;
d
any other consultancy services.
7
Head 6 is any deductions made by the company in respect of any of the following services—
a
the supply of water, fuel or power;
b
telecommunications services;
c
computing services, including computer software;
d
postal services;
e
the transportation of any items;
f
the collection, removal and disposal of refuse.
8
In this section—
- “
externally provided worker
” has the same meaning as in Part 13 of CTA 2009 (see section 1128 of that Act),
- “
IP-related services
” means services provided in connection with—
  1. any application for a right to which this Part applies, or
  2. any proceedings relating to the enforcement of any such right,
- “
premises
” includes any land,
- “
telecommunications service
” means any service that consists in the provision of access to, and of facilities for making use of, any telecommunication system (whether or not one provided by the person providing the service), and
- “
telecommunication system
” means any system (including the apparatus comprised in it) which exists for the purpose of facilitating the transmission of communications by any means involving the use of electrical or electromagnetic energy.
9
The Treasury may by regulations amend this section.
Pt. 8A inserted (with effect in accordance with Sch. 2 paras. 7, 8 of the amending Act) by Finance Act 2012 (c. 14), Sch. 2 para. 1(1)
Pt. 8A Chs. 2A, 2B inserted (with effect in accordance with s. 64(7) of the amending Act) by Finance Act 2016 (c. 24), s. 64(3)