Capital Allowances Act 2001 section 474

Allocation of qualifying expenditure to pools

Section 474 sets out the rules governing when qualifying expenditure on patent rights can be allocated to a capital allowances pool.

• Qualifying expenditure is allocated to a pool for the chargeable period in which it is incurred, or for a later chargeable period if preferred
• Expenditure cannot be allocated to a pool for a period earlier than the one in which it was incurred
• Expenditure that has already been taken into account in determining available qualifying expenditure for an earlier period cannot be allocated again
• Expenditure on patent rights cannot be allocated to a pool if those rights have already expired without revival, or have been wholly disposed of, in an earlier period