Capital Allowances Act 2001 section 102

Limit on qualifying expenditure

Section 102 of Schedule 3 provides transitional rules that exempt older patent-related expenditure from the anti-avoidance limits imposed by section 481.

• Section 481 imposes anti-avoidance limits on qualifying expenditure for patent allowances
• Expenditure incurred before 1 April 1986 is completely exempt from the section 481 limitations
• Subsections (5) and (6) of section 481 do not apply to expenditure incurred before 27 July 1989
• These transitional rules preserve the tax treatment that applied when the original expenditure was incurred