Part 9Intellectual property: know-how and patents
Chapter 3Sales of patent rights
Spreading of charge to tax
914UK resident companies: proceeds of sale not received in instalments
1
This section applies if a company liable for tax under section 912—
a
is UK resident, and
b
does not receive the proceeds of sale in instalments.
2
The appropriate fraction of the amount chargeable is taxed—
a
in the accounting period in which the company receives the proceeds of sale (“the period of receipt”), and
b
in successive accounting periods, until the expiry of the 6-year period beginning at the start of the period of receipt.
3
The appropriate fraction is the same fraction of the amount chargeable as the accounting period in question is of 6 years (or, in the last period, such smaller fraction of that amount as has not already been taxed).
4
The company may elect that the whole of the amount chargeable is to be taxed instead in the period of receipt.
5
An election under subsection (4) must be made within the two-year period beginning at the end of the period of receipt.