Corporation Tax Act 2009

176Meaning of “know-how” etcU.K.

This adran has no associated Nodiadau Esboniadol

(1)In this Chapter “know-how” means any industrial information or techniques likely to assist in—

(a)manufacturing or processing goods or materials,

(b)working a source of mineral deposits (including searching for, discovering or testing mineral deposits or obtaining access to them), or

(c)carrying out any agricultural, forestry or fishing operations.

(2)For this purpose—

  • mineral deposits” includes any natural deposits capable of being lifted or extracted from the earth and for this purpose geothermal energy is treated as a natural deposit, and

  • source of mineral deposits” includes a mine, an oil well and a source of geothermal energy.

(3)For the purposes of this Chapter any consideration received for giving, or wholly or partly fulfilling, an undertaking which—

(a)is given in connection with a disposal of know-how, and

(b)restricts, or is designed to restrict, any person's activities in any way,

is treated as consideration received for the disposal of the know-how.

(4)It does not matter whether or not the undertaking is legally enforceable.

(5)For the purposes of this Chapter references to a sale of know-how include an exchange of know-how and any provision of this Chapter referring to a sale has effect with the necessary modifications.

(6)Those modifications include, in particular, reading references to the proceeds of sale and to the price as including the consideration for the exchange.