Commentary

B5.312 Traders in intellectual property

Business tax
Business tax | Commentary

B5.312 Traders in intellectual property

Business tax | Commentary

B5.312 Traders in intellectual property

The corporate tax treatment of intangible assets, including intellectual property, acquired or created on or after 1 April 2002 is set out in the corporate intangible regime as detailed in Division D1.6.

Businesses carrying on a trade of exploiting patents are assessed on profits from the sale of such rights as trading income. Therefore, the question of whether a business or indeed an individual is actually carrying on a trade of exploiting patents may arise. Rees Turbo Development Syndicate Ltd1 concerned a company whose business was the exploitation of patents by licensing. It was held that

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