[F1261ADisposal of know-how as part of disposal of all or part of a tradeU.K.
(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.]
Textual Amendments
F1S. 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)