# Taxation of Chargeable Gains Act 1992, Section 261A: Disposal of know-how as part of disposal of all or part of a trade


(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/1992/12/section/261A (the official version)
Page: https://openlegislation.uk/taxation-of-chargeable-gains-act-1992/section-261A
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.