Corporation Tax Act 2009 section 912

Charge to tax on profits from sales of patent rights

Section 912 establishes that corporation tax on income applies to profits a company makes from selling patent rights, including sales by non-UK resident companies where the patent was granted under UK law.

• Profits from the sale of all or part of a company's patent rights are subject to corporation tax on income
• Non-UK resident companies are caught by this charge where the patent was granted under UK law
• "Patent rights" means the right to do, or authorise others to do, something that would otherwise constitute patent infringement
• This section applies to capital sums received from patent sales, ensuring they are taxed as income rather than escaping the tax charge