Capital Allowances Act 2001 section 94

Entitlement to writing-down allowances

Section 94 sets out the conditions that must be met before a writing-down allowance can be claimed in respect of qualifying expenditure on patent rights incurred before 1 April 1986.

• The chargeable period must fall wholly or partly within the designated writing-down period for the expenditure in question.
• There must be no prohibition on writing-down allowances for the period under the rules dealing with the end of such allowances.
• The claimant must either be using the patent rights in a taxable trade during the period, or any income receivable from the patent rights in that period must be liable to tax.
• The total writing-down allowances claimed for any single item of qualifying expenditure — whether by one person or by several different persons — must never exceed the original amount of that expenditure.