Section 913 — Corporation Tax Act 2009: Profits charged under section 912

Profits charged under section 912 913 1 A company's profits from the sale of the whole or part of patent rights are—

a any capital sum comprised in the proceeds of sale, less b the deductible costs.

2 The deductible costs are—

a the capital cost (if any) of the rights sold, and b any incidental expenses incurred by the company in connection with the sale.

3 If—

a the company acquired the rights sold, or the rights out of which they were granted, by purchase, b the company has previously sold part of the purchased rights, and c the proceeds of that sale, after deducting any incidental expenses, consisted wholly or partly of a capital sum, the capital cost is reduced by that sum.

4 References in this Chapter to the capital cost of patent rights are to any capital sum included in any price paid by the company to purchase—

a the rights, or b the rights out of which they were granted.

5 This section needs to be read with sections 924 (relief for expenses: patent income) and 926 (contributions to expenditure).