B3.604 Patent rights balancing allowances and balancing charges
A balancing allowance can only arise in the final chargeable period. If, in that period, AQE exceeds TDR (see B3.603), the excess is a balancing allowance and no writing-down allowance is given for that period1.
The final chargeable period is as follows:
(a) for a pool to which qualifying trade expenditure (see B3.603) has been allocated, the chargeable period in which the trade is permanently discontinued;
(b) for a pool to which qualifying non-trade expenditure (see B3.603) has been allocated, the chargeable period in which the last of the patent rights on which the person has incurred qualifying non-trade expenditure comes to an end without any of those rights being revived, or is wholly disposed of2.
On 18 November 2014, E Ltd bought new patent rights at a cost of £5,000 for use in its trade. On 1 March 2018, the
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