Commentary

B5.345 Disposal of know-how where trade continues

Business tax
Business tax | Commentary

B5.345 Disposal of know-how where trade continues

Business tax | Commentary

B5.345 Disposal of know-how where trade continues

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.

Where a trader1 receives consideration for the disposal of know-how which has been used in the trade2 and he continues the trade after the disposal3 the amount or value of the consideration is treated as a trading receipt4 provided5:

  1.  

    •     it is not a disposal of know-how as part

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