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DB 40: Patent applications or patent rights acquired on or after 1 April 1993
or “Deductions for selling patents or rights acquired since April 1993”
You could also call this:

“Tax deductions for unsuccessful plant variety rights applications”

If you spend money to apply for plant variety rights but don’t get them, you can still claim that money as a tax deduction. This applies if you don’t send in your application, if you take it back, or if your application is turned down. You can claim the money you spent on the application as long as it would have been counted as part of the cost of fixed life intangible property or been a deduction if you had gotten the rights. You can only claim this deduction if you can’t claim it under any other rule.

You can claim this deduction in the tax year when you decide not to send in your application, when you take it back, or when you’re told you can’t have the plant variety rights.

Even though this deduction is for something that might normally be seen as a capital expense, you’re still allowed to claim it. But you still need to follow the general rules about what you’re allowed to claim as a deduction.

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Next up: DB 40B: Expenditure in unsuccessful development of software

or “Money back for unfinished business software development”
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Part D Deductions
Specific rules for expenditure types

DB 40BAExpenses in application for plant variety rights

  1. A person who incurs expenditure for the purpose of applying for the grant of plant variety rights and does not obtain the grant because the application is not lodged or is withdrawn, or because the grant is refused, is allowed a deduction for the expenditure—

  2. that the person incurs in relation to the application or intended application; and
    1. that would have been part of the cost of fixed life intangible property, or otherwise a deduction, if the application or intended application had been granted; and
      1. for which the person is not allowed a deduction under another provision.

        1. The deduction is allocated to the income year in which the person decides not to lodge the application, withdraws the application, or is refused the grant of plant variety rights.

        2. This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply.

        Notes
        • Section DB 40BA: inserted (with effect on 1 April 2014 and applying for the 2014–15 and later income years), on , by section 48 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).