Corporation Tax Act 2010

[F1[F2357BLEQualifying expenditure on acquisition of relevant qualifying IP rightsU.K.
This section has no associated Explanatory Notes

(1)In section 357BLA, the company's “qualifying expenditure on the acquisition of relevant qualifying IP rights” means the expenditure incurred by the company in making during the relevant period payments within any of subsections (2), (3) and (4).

(2)A payment is within this subsection if it is made to a person in respect of the assignment by that person to the company of a relevant qualifying IP right.

(3)A payment is within this subsection if it is made to a person in respect of the grant or transfer by that person to the company of an exclusive licence in respect of a relevant qualifying IP right.

(4)A payment is within this subsection if—

(a)it is made to a person in respect of the disclosure by that person to the company of any item or process, and

(b)the company applies for and is granted a relevant qualifying IP right in respect of that item or process (or any item or process derived from it).

(5)Where the company has incurred expenditure in making a series of payments to a person in respect of a single assignment, grant, transfer or disclosure, each of the payments in the series is to be treated for the purposes of this section as having been made on the date on which the first payment in the series was made.

(6)Relevant qualifying IP right” means—

(a)in a case where the sub-stream is an individual IP right sub-stream, the qualifying IP right to which the income in the sub-stream is attributable,

(b)in a case where the sub-stream is a product sub-stream, a qualifying IP right granted in respect of an item—

(i)to which income in the sub-stream is attributable, or

(ii)which is incorporated in an item to which income in the sub-stream is attributable, or

(c)in a case where the sub-stream is a process sub-stream, a qualifying IP right granted in respect of a process—

(i)to which income in the sub-stream is attributable, or

(ii)which is incorporated in a process to which income in the sub-stream is attributable.]]

Textual Amendments

F1Pt. 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)

F2Pt. 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)