Section 261A | Disposal of know-how as part of disposal of all or part of a trade ^F1

(1)This section applies if—^F1

(a)a person carrying on a trade receives consideration for the disposal of know-how which has been used in the trade, and^F1

(b)the know-how is disposed of as part of the disposal of all or part of the trade.^F1

(2)If, as a result of section 194 of ITTOIA 2005, the consideration is treated for income tax purposes as—^F1

(a)a capital receipt for goodwill (in relation to the person disposing of the know-how), or^F1

(b)a capital payment for goodwill (in relation to the person acquiring the know-how),^F1

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.^F1