DB 40 Patent applications or patent rights acquired on or after 1 April 1993
When this section applies

(1)

This section applies when a person disposes of a patent application with a complete specification or patent rights that they acquired on or after 1 April 1993.

Deduction

(2)

The person is allowed a deduction on the disposal of the patent application with a complete specification or patent rights.

Amount of deduction

(3)

The amount is calculated using the formula—

total cost − total amounts of depreciation loss.

Definition of items in formula

(4)

In the formula,—

(a)

total cost is the total cost to the person of the patent application with a complete specification or of the patent rights, excluding any expenditure for which the person has been allowed a deduction under section DZ 15 (Patent applications before 1 April 2005):

(b)

total amounts of depreciation loss is the total of the amounts of depreciation loss, for which the person is allowed a deduction, for the patent application with a complete specification or for the patent rights and the patent application relating to the patent rights.

Link with subpart DA

(5)

This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply.

Defined in this Act: amount, capital limitation, deduction, depreciation loss, general limitation, general permission, patent right

Compare: 2004 No 35 s DB 31

Section DB 40(1): amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on 24 February 2016, by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).

Section DB 40(2): amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on 24 February 2016, by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).