Commentary on Sections Overview Part 3: Qualifying companies Paragraph 19: Excluded activities: receipt of royalties or licence fees
3499.Another excluded activity listed in paragraph 16 of this Schedule is the receipt of royalties or licence fees. Paragraph 19, which derives from paragraph 22 of Schedule 14 to FA 2000, relaxes this line somewhat and allows a qualifying trade to include the receipt of royalties or licence fees in respect of certain intangible assets as described in this paragraph.
3500.Alterations to paragraph 14 of this Schedule have enabled this provision to be expressed positively.
3501.The reference to “normal accounting practice” has been replaced by “generally accepted accounting practice” in sub-paragraph (7). This is in line with the definition in section 103(1) of FA 2002.