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.
Commentary on Sections Overview Overview Section 193: Disposal of know-how if trade continues to be carried on