SCHEDULES

SCHEDULE 1U.K.Consequential amendments

Part 2U.K.Other enactments

Taxation of Chargeable Gains Act 1992 (c. 12)U.K.

444U.K.After section 261 insert—

Know-howU.K.
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.