Income Tax (Trading and Other Income) Act 2005 (c. 5)

Part 5 U.K. Miscellaneous income

Chapter 2 U.K. Receipts from intellectual property

Sales of patent rights U.K.

587 Charge to tax on income from sales of patent rights U.K.

(1) Income tax is charged on profits from sales of the whole or part of any patent rights.

(2) The tax is charged if—

(a) the seller is a UK resident, or

(b) the seller is a non-UK resident and the patent is granted under the laws of the United Kingdom.

(3) Where the seller is a non-UK resident company, tax is not charged if the seller is chargeable to corporation tax in respect of the proceeds of the sale.

(4) In this Chapter “patent rights” means the right to do or authorise the doing of anything which, but for the right, would be an infringement of a patent.