Commentary

B5.336 Non-residents receiving capital for patents

Business tax
Business tax | Commentary

B5.336 Non-residents receiving capital for patents

Business tax | Commentary

B5.336 Non-residents receiving capital for patents

The corporate tax treatment of intangible assets, including patents, acquired or created on or after 1 April 2002 is set out in the corporate intangible regime as detailed in Division D1.6. The commentary below relates to pre-FA 2002 assets where it refers to corporation tax.

The rules described in this article are subject to any reliefs under a double taxation agreement with the territory in which the seller of the rights is resident.

A non-UK resident is only liable to UK income tax on profits from the sale of UK patent rights1. A non-resident company is not chargeable to income tax if it is chargeable to corporation tax on the sale of such rights (for example if it is trading through a UK permanent establishment)2.

Unless the proceeds of sale

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