C1

Part 7 Know-how allowances

Chapter 3 Allowances and charges

462 Disposal values

1

A person is required to bring a disposal value into account for the chargeable period in which he sells know-how on which he has incurred qualifying expenditure.

2

The disposal value to be brought into account is the net proceeds of the sale, so far as they consist of capital sums.

3

But no disposal value need be brought into account if the consideration received for the sale is treated as a payment for goodwill under F1section 194(2) of ITTOIA 2005 or under section 531(2) of ICTA (consideration for know-how on disposal of trade to be treated as payment for goodwill, unless parties otherwise elect).