BIM50725 | Authors and literary profits: royalties to person other than author
From HM Revenue & Customs · Business Income Manual
Copyright royalties received by an individual other than the author, composer etc (unless they form part of the receipts of a trade or represent post-cessation receipts - see ), are chargeable to Income Tax as miscellaneous income. A deduction should be given, where appropriate, for agents' commission.
Copyright royalties received by a company are dealt with under the intangible assets regime. See onwards.
Where it is claimed that royalties are not chargeable because of the decision in Hume v Asquith [1968] 45 TC 251, the case should be referred to Business Profits (Technical).