Section 909 — Corporation Tax Act 2009: Exceptions to charge under section 908

Exceptions to charge under section 908 909 1 Section 908 does not apply in the following cases.

2 Case A is if the consideration is brought into account under section 462 of CAA 2001 (disposal values).

3 Case B is if the consideration is dealt with in relation to the company receiving it as a trading receipt under section 177(2) (disposal of know-how if trade continues to be carried on).

4 Case C is if the consideration is dealt with in relation to the person receiving it as a capital receipt for goodwill under section 178(2) (disposal of know-how as part of disposal of all or part of a trade).

5 Case D is if the disposal of the know-how is by way of a sale and—

a the buyer is a body of persons over which the seller has control, b the seller is a body of persons over which the buyer has control, or c the buyer and the seller are both bodies of persons and another person has control over both of them.

6 In subsection (5) “ body of persons ” includes a firm.