Income Tax (Trading and Other Income) Act 2005 section 89

Expenses connected with patents

Section 89 allows a deduction for certain patent-related expenses when calculating the profits of a trade.

• Expenses incurred in obtaining the grant of a patent for trade purposes are deductible
• Costs of extending a patent's term for the purposes of the trade are also deductible
• Expenses connected with patent applications that are rejected or abandoned are equally deductible, provided the application was made for trade purposes
• This relief does not extend to professions or vocations — it applies only to trades