Commentary on Sections Glossary Structure of this Part Section 454: Qualifying expenditure
1605.This section is based on section 530(1) and (7) and section 531(3) of ICTA. It defines “qualifying expenditure”.
1606.Subsection (1) lists the expenditure on acquiring know-how that is qualifying expenditure. A person must carry on a trade in order to have qualifying expenditure but that expenditure may be incurred before the trade starts.
1607.Subsection (2) stops capital allowances being given more than once on the same qualifying expenditure. This provision does not appear explicitly in ICTA. See Note 59 in Annex 2.
1608.Subsection (3) ensures that qualifying expenditure qualifies for allowances when the relevant trade starts in the case of qualifying expenditure incurred before that trade starts.
1609.Subsection (4) defines a term used in subsection (3).