Corporation Tax Act 2009 section 908

Charge to tax on profits from disposals of know-how

Section 908 establishes that profits a company receives from disposing of know-how, or from giving restrictive undertakings connected with such a disposal, are subject to corporation tax as income.

• Corporation tax on income applies to profits a company receives for disposing of know-how or for giving a restrictive undertaking connected with a know-how disposal
• A restrictive undertaking is caught whether or not it is legally enforceable
• Know-how means industrial information or techniques useful in manufacturing or processing goods, working mineral deposits, or carrying out agricultural, forestry or fishing operations
• Mineral deposits include any natural deposits capable of being extracted from the earth, including geothermal energy, and sources of mineral deposits include mines, oil wells and geothermal energy sources