Commentary on Sections Overview Chapter 2: Disposals of know-how Section 908: Charge to tax on profits from disposals of know-how
2300.The sections in Chapter 2 deal with consideration received for the disposal of know-how. This section applies the charge to corporation tax on income to the proceeds of certain disposals of know-how. It is based on section 531 of ICTA. The corresponding rule for income tax is in section 583 of ITTOIA.
2301.Under the source legislation, income from disposals of know-how is charged to tax under Schedule D Case VI of ICTA.
2302.Subsection (1) applies the charge to corporation tax on income. Subsection (1)(b) is based on section 531(8) of ICTA but the words “whether absolute or qualified” are omitted since they are superfluous.
2303.Subsection (5) restores a definition of “mineral deposits” that applied before CAA was enacted. This change reproduces Change 51 in ITTOIA and so brings the income and corporation tax codes back into line. See Change 41 in Annex 1.