Commentary

B3.608 Patent rights manner of making allowances and charges

Business tax
Business tax | Commentary

B3.608 Patent rights manner of making allowances and charges

Business tax | Commentary

B3.608 Patent rights manner of making allowances and charges

Qualifying trade expenditure

Allowances are treated as expenses of the trade and balancing charges are treated as receipts of the trade1.

Qualifying non-trade expenditure—income tax

Allowances for a tax year are given by deduction from income from patents (see below) for that year; this deduction is made before deduction of personal allowances. Any allowances which cannot be so deducted are deducted from income from patents for the next tax year, and so on2.

A balancing charge is assessed as miscellaneous income3. See B3.602.

Qualifying non-trade expenditure—corporation tax

Allowances for an accounting period are

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial