Corporation Tax Act 2009 section 907

Overview of Part

Section 907 introduces Part 9, which deals with the corporation tax treatment of profits from disposing of know-how, selling patent rights, and relief available on patent income.

• Profits from disposals of know-how and sales of patent rights are charged to corporation tax as income under this Part
• Relief from corporation tax is available on patent income under Chapter 4 of this Part
• The intangible fixed assets rules in Part 8 take priority — broadly, Part 8 applies to assets created or acquired on or after 1 April 2002, while this Part continues to apply to older assets
• Royalties from intellectual property automatically fall within Part 8 if recognised for accounting purposes on or after 1 April 2002, so this Part mainly applies to non-royalty amounts such as capital receipts