Corporation Tax Act 2010 section 357GC

Meaning of "cost-sharing arrangement" etc.

Section 357GC defines what a "cost-sharing arrangement" means and what counts as an "invention" within such an arrangement, for the purposes of the Patent Box regime.

• A cost-sharing arrangement is one where each party must contribute financially or undertake development activities to create or develop an item or process
• Each party must be entitled to a share of income from the item or process, or hold one or more rights in respect of it
• The income each party receives must be proportionate to their level of participation in the arrangement
• An "invention" in this context means the item or process that is the subject of the arrangement, including any item or process incorporated within it