Section 1272 — Corporation Tax Act 2009: Sale of patent rights: effect of later cessation of trade

Sale of patent rights: effect of later cessation of trade 1272 1 This section applies if—

a a person sells the whole or part of any patent rights in carrying on a trade, b by virtue of section 1271 amounts are chargeable to corporation tax under section 912 as profits of one or more companies for the time being carrying on the trade in partnership, c a partner which is a company ceases to carry on the trade after that, and d no company which carried on the trade immediately before the cessation continues to carry on the trade in partnership immediately after the cessation.

2 Any amounts mentioned in subsection (1)(b) which would have been chargeable in any accounting period of a company later than that in which the cessation occurred are charged in the accounting period of the company in which the cessation occurred.