Commentary on Sections Overview Overview Section 193: Disposal of know-how if trade continues to be carried on
793.This section sets out a general rule for the treatment of payments received for the disposal of know-how. It is based on section 531 of ICTA.
794.Subsection (1) includes a signpost to the main exceptions to the general rule:
	if the know-how is disposed of as part of the disposal of a trade; and
	if the seller and buyer are under common control.
795.Subsection (2) is the general rule that consideration for the disposal of know-how is treated as a trade receipt.
796.Subsections (3) to (6) deal with the case where know-how is disposed of with other assets. The rules are based on section 572 of CAA, which applies to section 531 of ICTA in accordance with section 532 of ICTA.