Capital Allowances Act 2001 section 93

Qualifying expenditure and unrelieved qualifying expenditure

Section 93 defines "qualifying expenditure" on patent rights and sets out the steps for calculating the unrelieved qualifying expenditure for a chargeable period.

• Qualifying expenditure means capital expenditure incurred before 1 April 1986 on the purchase of patent rights
• The calculation starts with the original item of qualifying expenditure
• Writing-down allowances already given for earlier chargeable periods are deducted from that expenditure
• Any capital proceeds from sales of part of the patent rights before the start of the chargeable period are also deducted