# Income Tax (Trading and Other Income) Act 2005, Paragraph 444


After section 261 insert—
“Know-how
Disposal of know-how as part of disposal of all or part of a trade
261A (1) This section applies if—
(a) a person carrying on a trade receives consideration for the disposal of know-how which has been used in the trade, and
(b) the know-how is disposed of as part of the disposal of all or part of the trade.
(2) If, as a result of section 194 of ITTOIA 2005, the consideration is treated for income tax purposes as—
(a) a capital receipt for goodwill (in relation to the person disposing of the know-how), or
(b) a capital payment for goodwill (in relation to the person acquiring the know-how),
the consideration is treated for capital gains tax purposes in the same way.
(3) This section has effect as if it were contained in Chapter 14 of Part 2 of ITTOIA 2005.”

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Source: https://www.legislation.gov.uk/ukpga/2005/5/schedule/1/paragraph/444 (the official version)
Page: https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/schedule-1/paragraph-444
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.