Income Tax (Trading and Other Income) Act 2005 section 579

Charge to tax on royalties and other income from intellectual property

Section 579 imposes an income tax charge on royalties and other income derived from intellectual property, and defines what constitutes intellectual property for this purpose.

• Income tax is charged on all royalties and other income received from intellectual property.
• Intellectual property includes patents, trade marks, registered designs, copyrights, design rights, performer's rights and plant breeder's rights.
• The definition extends to similar or corresponding rights under the law of any part of the United Kingdom or any territory outside the United Kingdom.
• Unprotected ideas, information or techniques that do not fall under any formal intellectual property right are also covered by the charge.