Section 176 — Corporation Tax Act 2009: Meaning of “know-how” etc

Meaning of “know-how” etc 176 1 In this Chapter “ know-how ” means any industrial information or techniques likely to assist in—

a manufacturing or processing goods or materials, b working a source of mineral deposits (including searching for, discovering or testing mineral deposits or obtaining access to them), or c carrying out any agricultural, forestry or fishing operations.

2 For this purpose— “ mineral deposits ” includes any natural deposits capable of being lifted or extracted from the earth and for this purpose geothermal energy is treated as a natural deposit, and “ source of mineral deposits ” includes a mine, an oil well and a source of geothermal energy.

3 For the purposes of this Chapter any consideration received for giving, or wholly or partly fulfilling, an undertaking which—

a is given in connection with a disposal of know-how, and b restricts, or is designed to restrict, any person's activities in any way, is treated as consideration received for the disposal of the know-how.

4 It does not matter whether or not the undertaking is legally enforceable.

5 For the purposes of this Chapter references to a sale of know-how include an exchange of know-how and any provision of this Chapter referring to a sale has effect with the necessary modifications.

6 Those modifications include, in particular, reading references to the proceeds of sale and to the price as including the consideration for the exchange.