Part 9Intellectual property: know-how and patents

Chapter 1Introduction

907Overview of Part

1

This Part applies the charge to corporation tax on income to—

a

profits from disposals of know-how (see Chapter 2), and

b

profits from sales of patent rights (see Chapter 3).

2

This Part also provides for relief from corporation tax on patent income (see Chapter 4).

3

Chapter 5 contains supplementary provision relevant to Chapters 2 to 4.

4

This Part needs to be read in the light of Part 8 (intangible fixed assets).

5

See in particular the following provisions of Part 8, which are relevant to the application of that Part—

a

section 713 (meaning of “intangible fixed asset”),

b

Chapter 16 (which limits the application of Part 8 to assets which are not pre-FA 2002 assets within the meaning of section 881), and

c

section 906 (which contains a rule about the priority of Part 8 for corporation tax purposes).