Income Tax (Trading and Other Income) Act 2005 section 578

Contents of Chapter

Section 578 provides an overview of Chapter 2, which imposes three separate income tax charges on receipts from intellectual property and also signposts relevant exemptions and relief.

• The chapter imposes income tax charges on three types of intellectual property income: royalties and other income from intellectual property (section 579), income from disposals of know-how (section 583), and income from sales of patent rights (section 587).
• An exemption from the charge on royalties and other intellectual property income may be available under section 727, which deals with certain annual payments made by individuals.
• The chapter also provides relief from income tax on patent income under section 600, covering allowable expenses against such income.
• The chapter therefore acts as a roadmap, directing the reader to the specific charging, exemption, and relief provisions that apply to intellectual property receipts falling outside a trade, profession, or vocation.