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The calculation of patent writing-down allowances for qualifying expenditure is similar to that for plant and machinery (see Division B3.3). Qualifying expenditure (see B3.602) is pooled for the purpose of determining writing-down allowances, balancing allowances and balancing charges¹.

There is a separate pool²:

1. Ìý

   •ÌýÌýÌýÌý for each trade in respect of which the person has qualifying trade expenditure (see B3.602), and

2. Ìý

   •ÌýÌýÌýÌý for all of the person's qualifying non-trade expenditure (see B3.602)

A person is entitled to a writing-down allowance for a chargeable period (except the final chargeable period) if AQE exceeds TDR for that period, where³:

1. Ìý

   •ÌýÌýÌýÌý AQE is the available qualifying expenditure in the pool for that period, and

2. Ìý

   •ÌýÌýÌýÌý TDR is the total disposal receipts to be brought into account in that pool for the period

The allowance is 25% of the excess⁴, but the claimant may restrict the allowance to a specified amount⁵.

If the chargeable period is more or less than a year, the allowance