Corporation Tax Act 2010 section 357BJB

Deductions that are not routine deductions

Section 357BJB identifies certain categories of tax deduction that are excluded from being treated as "routine deductions" when calculating the routine return figure for the patent box regime.

• Debits arising from loan relationships and derivative contracts that are treated as trading expenses are not routine deductions
• Research and development expenditure qualifying for additional deductions or R&D expenditure credits, together with capital allowances for R&D and patents, are excluded from routine deductions
• An appropriate proportion of employee share acquisition relief is excluded where the employee is engaged in relevant research and development activities
• Expenditure on the production of films, television programmes and video games for which audiovisual or video game expenditure credits are claimed is not a routine deduction, and the Treasury may amend these categories by regulations