Part 5Miscellaneous income
Chapter 2Receipts from intellectual property
Disposals of know-how
584Exceptions to charge under section 583
1
Section 583 does not apply in the following cases.
2
Case A is if the consideration is brought into account under—
a
section 579 (charge to tax on royalties etc.), or
b
section 462 of CAA 2001 (disposal values).
3
Case B is if the consideration is dealt with in relation to the person receiving it as a capital receipt for goodwill under section 194(2) (disposal of know-how as part of disposal of all or part of a trade).
4
Case C is if the disposal of the know-how is by way of a sale and—
a
the buyer is a body of persons over which the seller has control,
b
the seller is a body of persons over which the buyer has control, or
c
the buyer and the seller are both bodies of persons and another person has control over both of them.
5
In subsection (4) “body of persons” includes a firm.
6
See also Chapter 14 of Part 2 and section 575 (disposals of know-how used in a trade dealt with by Part 2).