Capital Allowances Act 2001 section 483

Meaning of "income from patents"

Section 483 defines what counts as "income from patents" for the purposes of the patent allowances rules in this Part of the Act.

• Income from patents includes royalties or other payments received for the use of a patent
• Balancing charges arising under the patent allowances rules are also treated as income from patents
• Amounts taxable on the sale of patent rights — whether for income tax or corporation tax purposes — form part of income from patents
• This definition matters because it determines the income against which non-trade patent allowances can be set off