# Capital Allowances Act 2001, Paragraph 98: Reduced writing-down allowance


(1) If a person sells part of any patent rights in a chargeable period, and for that period U is greater than N, the writing-down allowance for that period is—
U-NYwhere—
U is the unrelieved qualifying expenditure for the chargeable period,
N is the net proceeds of any sales of the patent rights which take place in the chargeable period (so far as those proceeds consist of capital sums), and
Y is the number of complete years of the writing-down period remaining at the beginning of the chargeable period.
(2) If an amount is calculated under sub-paragraph (1) for a chargeable period, that amount is also the amount of the writing-down allowance for subsequent chargeable periods until another sale in a period for which U is greater than N causes a fresh calculation to be made under sub-paragraph (1).
(3) If a chargeable period is more or less than a year, an allowance calculated under sub-paragraph (1) or (2) is proportionately increased or reduced.

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Source: https://www.legislation.gov.uk/ukpga/2001/2/schedule/3/paragraph/98 (the official version)
Page: https://openlegislation.uk/capital-allowances-act-2001/schedule-3/paragraph-98
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.