Corporation Tax Act 2010 section 357BJA

Routine deductions

Section 357BJA defines what counts as a "routine deduction" for the purposes of calculating the routine return figure under the Patent Box regime, listing six categories of everyday business costs that are treated as routine.

• Routine deductions cover six broad heads: capital allowances, premises costs, personnel costs, plant and machinery costs, professional services, and miscellaneous services such as utilities, computing, and telecommunications.
• Personnel costs include not only directors and employees but also externally provided workers, while professional services cover legal, financial, HR administration, and consultancy costs — but exclude legal services connected with IP applications or enforcement.
• Certain deductions are excluded from being routine deductions under section 357BJB, so the categories listed here are not absolute — they are subject to that exclusion.
• The Treasury has the power to amend these categories by regulations, meaning the list of routine deductions may change over time.