Capital Allowances Act 2001 section 99

Balancing allowance on sale or expiry of patent rights

Section 99 deals with the circumstances in which a balancing allowance arises when patent rights are sold or come to an end, and how the amount of that allowance is calculated.

• A balancing allowance may be claimed where patent rights expire without revival, or where the owner sells all remaining patent rights, provided there is unrelieved qualifying expenditure in that period.
• The entitlement only exists if a writing-down allowance has previously been given, or could have been given but for the rights ending or being sold.
• Where the rights simply expire, the balancing allowance equals the full amount of unrelieved qualifying expenditure for the period.
• Where the rights are sold, the balancing allowance equals the unrelieved qualifying expenditure less the net capital proceeds received from the sale in that period.