Income Tax (Trading and Other Income) Act 2005 section 586

Person liable for tax under section 583

Section 586 identifies who is liable to pay income tax on amounts received from the disposal of know-how that are charged under section 583.

• This section deals with the liability for tax on income arising from disposals of know-how.
• The tax charge arises under section 583, which taxes consideration received for disposals of know-how outside of a trade.
• The person who receives the consideration (i.e. the payment) for the know-how disposal is the person liable to pay the tax.
• This is a straightforward rule: the recipient of the money bears the tax obligation.