Corporation Tax Act 2009 section 924

Relief for expenses: patent income

Section 924 provides tax relief for companies that incur expenses related to obtaining or maintaining patents, where those expenses are not already deductible as trading expenses.

• Companies can claim relief for expenses connected with obtaining, maintaining or extending a patent, as well as costs of failed or abandoned patent applications
• The relief only applies to expenses that are not incurred for the purposes of a trade the company carries on — trading patent expenses are dealt with separately under section 89
• The expenses must be of a type that would have been allowable as a deduction in calculating trading profits, had they been incurred for trading purposes
• Relief is given on the basis of expenses incurred, and any contributions received from third parties towards the expenditure must be taken into account under section 926