Part 5 U.K.Miscellaneous income

Chapter 2U.K.Receipts from intellectual property

Sales of patent rightsU.K.

598Rights to acquire future patent rightsU.K.

(1)If a sum is paid to obtain a right to acquire future patent rights, then for the purposes of sections 587 to 596—

(a)the payer is treated as purchasing patent rights for that sum, and

(b)the recipient is treated as selling patent rights for that sum.

(2)If a person—

(a)pays a sum to obtain a right to acquire future patent rights, and

(b)subsequently acquires those rights,

the expenditure is to be treated for the purposes of sections 587 to 596 as having been expenditure on the purchase of those rights.

(3)In this section “a right to acquire future patent rights” means a right to acquire in the future patent rights relating to an invention in respect of which the patent has not yet been granted.

Modifications etc. (not altering text)

C1Ss. 597-599 applied (6.4.2005) by 1988 c. 1, s. 349ZA(4) (as inserted by Income Tax (Trading and Other Income) Act 2005 (c. 5), ss. 882, 883(1), Sch. 1 para. 149 (with Sch. 2))

Ss. 597-599 applied (6.4.2007 with effect as stated in s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), ss. 910(4), 1034 (with transitional provisions and savings in Sch. 2)