Income Tax (Trading and Other Income) Act 2005 section 589

Person liable for tax under section 587

Section 589 identifies who is liable to pay the tax charged on income from the sale of patent rights.

• The tax charge on income from selling patent rights falls on the seller of those rights
• This liability applies specifically to the charge imposed under section 587
• The seller is personally responsible for accounting for the tax due on the sale proceeds
• This provision ensures there is a clearly identified taxpayer whenever patent rights are sold