Part 5Miscellaneous income
Chapter 2Receipts from intellectual property
Sales of patent rights
587Charge to tax on income from sales of patent rights
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.