Part 9Intellectual property: know-how and patents

Chapter 4Relief from corporation tax on patent income

924Relief for expenses: patent income

1

Relief may be claimed under this section for patent application and maintenance expenses.

2

In this section “patent application and maintenance expenses” means expenses incurred by a company 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 company.

3

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.

4

This section needs to be read with section 926 (contributions to expenditure).