Capital Allowances Act 2001 section 464

Patent allowances

Section 464 introduces the availability of capital allowances for expenditure on purchasing patent rights and defines what patent rights means.

• Capital allowances are available under this Part when a person incurs qualifying expenditure on purchasing patent rights.
• Patent rights are defined as the right to do, or authorise the doing of, anything that would otherwise constitute an infringement of a patent.
• The allowances only apply where there has been actual qualifying expenditure on the purchase of such rights — merely holding or creating a patent is not sufficient.
• This provision establishes the foundation for all subsequent rules in this Part dealing with the detailed computation and mechanics of patent allowances.