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Part 8 Patent allowances

Chapter 4 Giving effect to allowances and charges

478 Persons having qualifying trade expenditure

An allowance or charge to which a person is entitled or liable under this Part for a chargeable period in respect of qualifying trade expenditure is to be given effect in calculating the profits of the trade, by treating—

a

the allowance as an expense of the trade, and

b

the charge as a receipt of the trade.