Corporation Tax Act 2009 section 89

Expenses connected with patents

Section 89 allows a deduction from trading profits for expenses connected with obtaining, extending, or unsuccessfully applying for patents used in the trade.

• Expenses incurred in obtaining a patent grant for trade purposes are deductible
• Expenses incurred in extending a patent's term for trade purposes are also deductible
• Costs connected with a patent application that is rejected or abandoned are deductible, provided the application was made for trade purposes
• In most cases, relief for patent-related costs is now provided under the intangible fixed assets regime in Part 8 of the Act, but this section remains relevant for a minority of situations