522. Receipts from royalties and other income from intellectual property.

There is a charge to income tax as miscellaneous income on the full amount of any non-trading royalties and other income from intellectual property arising in a tax year1. The person liable for the tax is the person receiving or entitled to the income2.

Companies are charged to corporation tax on income from intellectual property either in accordance with the regime applying to intangible fixed assets3 or, if that is not applicable, under the charge to tax on annual payments not otherwise charged4.

Payments in respect of the user in the United Kingdom5 of foreign patents are payments in respect of