Commentary

B5.344 Know-how proceeds treated as income

Business tax
Business tax | Commentary

B5.344 Know-how proceeds treated as income

Business tax | Commentary

B5.344 Know-how proceeds treated as income

The corporate tax treatment of intangible assets, including know-how, 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 provision of know-how will usually involve by its very nature the provision of ancillary advice and assistance, and hence suggests a trading income treatment, except where the know-how is held as a pure investment and no such ancillary services are provided.

Know-how may be sold for a lump sum and it is then

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