Settlement of an Intellectual Property Dispute

Settlement of an Intellectual Property Dispute

Can the Cost of settling a dispute over Intellectual Property between two companies be claimed as an allowable business expense  for the "losing" company?


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12th Aug 2012 17:50

See http://www.hmrc.gov.uk/manuals/bimmanual/bim46415.htm

Where incurred on the maintenance of existing assets, trade rights or facilities (whether real or perceived) even if the assets, rights etc are of a capital nature, fees are revenue expenses. See Southern v Borax Consolidated Ltd [1940] 23TC597 ( BIM35540) and Cooper v Rhymney Breweries Ltd [1969] 42TC509. The admissibility of fees incurred to try to maintain alleged trade rights etc does not depend upon the outcome - they are allowable even where the attempt fails.

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