Capital Allowances Act 2001 section 469

Qualifying non-trade expenditure

Section 469 defines "qualifying non-trade expenditure" in the context of capital expenditure on patent rights.

• Qualifying non-trade expenditure is capital expenditure on purchasing patent rights outside of a trade context
• Any income the person receives from those patent rights must be liable to tax
• The expenditure must not already qualify as trade expenditure under the separate trade expenditure rules
• This definition determines eligibility for capital allowances on patent rights held for non-trade purposes