Section 261A — Taxation of Chargeable Gains Act 1992: Disposal of know-how as part of disposal of all or part of a trade

Disposal of know-how as part of disposal of all or part of a trade 261A 1 This section applies if—

a a person carrying on a trade receives consideration for the disposal of know-how which has been used in the trade, and b the know-how is disposed of as part of the disposal of all or part of the trade.

2 If, as a result of section 194 of ITTOIA 2005, the consideration is treated for income tax purposes as—

a a capital receipt for goodwill (in relation to the person disposing of the know-how), or b a capital payment for goodwill (in relation to the person acquiring the know-how), the consideration is treated for capital gains tax purposes in the same way.

3 This section has effect as if it were contained in Chapter 14 of Part 2 of ITTOIA 2005.