Commentary

B5.346 Disposal of know-how with trade

Business tax
Business tax | Commentary

B5.346 Disposal of know-how with trade

Business tax | Commentary

B5.346 Disposal of know-how with trade

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 trader receives consideration for the disposal of know-how which has been used in the trade1 and the know-how is disposed of as part of the disposal of all or part of the trade2, the consideration is generally treated for tax purposes as a capital receipt for goodwill, where the trader is within the charge to income tax or corporation tax3. No disposal value is brought into account

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