Corporation Tax Act 2009 section 176

Meaning of "know-how" etc

Section 176 defines what "know-how" means for corporation tax purposes and explains how related transactions such as restrictive undertakings and exchanges are treated.

• Know-how covers industrial information or techniques assisting in manufacturing, processing, mineral extraction, or agricultural, forestry and fishing operations
• Mineral deposits are broadly defined and include any natural deposits capable of being extracted from the earth, with geothermal energy treated as a natural deposit
• Any payment received for a restrictive undertaking given in connection with a disposal of know-how is treated as consideration for that disposal, regardless of whether the undertaking is legally enforceable
• References to a sale of know-how include an exchange, with proceeds of sale and price being read as including the consideration for the exchange