Previously, taxable persons were required to spread their IP and IPR expenditure over a minimum three-year consecutive period, which would start to run in the first year wherein the expenditure was incurred or in the year in which the IP or IPR is first used or employed in producing the income. Whilst this avenue remains available, the CfCT provides an alternative to taxable persons who may wish to deduct the entire expense in the year in which the expense is incurred or in the year in which the IP or IPRs are first used in producing the income.
Persons who have incurred IP or IPR expenditure prior to year of assessment 2024 and whose deductions have not been fully claimed, have the option to claim the entirety of the remaining deduction in year of assessment 2024. Therefore, by way of example, where the taxable person has opted to spread his IP / IPR expenditure over a four-year period in equal portions, and having claimed 25% of the deductions in the last year of assessment, he may opt to claim the remaining 75% during year of assessment 2024.
