Part VII Other property, businesses, investments etc.

F1Know-how

Annotations:
Amendments (Textual)
F1

S. 261A and cross-heading inserted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 444 (with Sch. 2)

261ADisposal of know-how as part of disposal of all or part of a trade

1

This section applies if—

a

a person carrying on a trade receives consideration for the disposal of know-how which has been used in the trade, and

b

the know-how is disposed of as part of the disposal of all or part of the trade.

2

If, as a result of section 194 of ITTOIA 2005, the consideration is treated for income tax purposes as—

a

a capital receipt for goodwill (in relation to the person disposing of the know-how), or

b

a capital payment for goodwill (in relation to the person acquiring the know-how),

the consideration is treated for capital gains tax purposes in the same way.

3

This section has effect as if it were contained in Chapter 14 of Part 2 of ITTOIA 2005.