Capital Allowances Act 2001 section 462

Disposal values

Section 462 sets out when and how a disposal value must be brought into account when a person sells know-how on which qualifying expenditure has been incurred.

• When know-how is sold, a disposal value must be brought into account in the chargeable period of the sale
• The disposal value is the net sale proceeds, but only to the extent those proceeds consist of capital sums
• Any element of the sale proceeds that is income in nature is excluded from the disposal value calculation
• No disposal value is required where the sale consideration is treated as a payment for goodwill under the relevant ITTOIA 2005 or CTA 2009 provisions on disposal of know-how as part of a trade