Income Tax (Trading and Other Income) Act 2005 section 192

Meaning of "know-how" etc.

Section 192 defines "know-how" and related terms used in the chapter dealing with the taxation of know-how disposals.

  • "Know-how" means industrial information or techniques useful in manufacturing, mineral extraction, or agricultural, forestry and fishing operations
  • "Mineral deposits" covers all natural deposits extractable from the earth, including geothermal energy, with sources including mines, oil wells and geothermal sources
  • Any payment received for a restrictive undertaking given in connection with a know-how disposal is treated as consideration for the disposal itself, whether or not 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

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