Income Tax (Trading and Other Income) Act 2005 section 605

Exchanges

Section 605 extends the definition of "sale" throughout this chapter to include exchanges of property, and clarifies how related terms such as proceeds, price, and capital sums should be read in the context of an exchange.

• Any reference to a "sale of property" in this chapter also covers an exchange of property, including the disposal of know-how
• "Property" is broadly defined to include know-how as well as tangible and other assets
• References to "proceeds of sale" or "price" include the consideration received in an exchange
• Where proceeds of sale include capital sums, the equivalent portion of exchange consideration that would have been a capital sum (had it been a money payment) is also included