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Patents and know-how (25%) |
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HMRC Manuals - Patents: Contents | HMRC Manuals - Know-how: Contents
For expenditure incurred after 31 March 1986, all expenditure on patent rights is pooled and allowances are given on a 25% reducing balance basis (a similar but separate pool must also be maintained for expenditure on know-how after the same date in the right-hand screen column).
This schedule can be developed from the C schedule using the Develop menu and Other allowances.
The schedule for these pools operates in the same manner as the schedule for the general pool.
Two additional rows, Less TWDV of CTA 2010 s948 transfers out and Add TWDV of assets transferred in under CTA 2010 s948, are present to enable users to deal with transfers under CTA 2010 s948. Users should enter the amount of the transfers using these rows rather than the additions or disposals rows. The software assumes that any transfer takes place at the year end.
For transfers out, enter the TWDV at the period start at the row Less TWDV of CTA 2010 s948 transfers out. Enter the amount of allowance due to the company in the period in the Capital allowances available to company on CTA 2010 s948 transfers out row. The amount is then posted directly to the A schedule and CT600.
For transfers in, enter the TWDV transferred in at the period end in the row Add TWDV of assets transferred in under CTA 2010 s948. Note that the assumption of transfer at the period end means that no capital allowances will be due in the transferee in the period.
In both cases, the accounts NBV transferred should be entered using the Other rows on the relevant Fixed assets schedules.
This schedule has no standard sub-schedules.
On carry forward, this schedule is automatically developed in the subsequent computation if it is present in the prior year computation. In the subsequent computation the tax written down value brought forward for both the patents and the know-how pools are entered automatically.
© 2009 Thomson Reuters.