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Legislation
Income Tax (Trading and Other Income) Act 2005

Chapter 14 Disposal and acquisition of know-how

  • Section 191A Chapter not to apply where cash basis used
  • Section 192 Meaning of “know-how” etc.
  • Section 193 Disposal of know-how if trade continues to be carried on
  • Section 194 Disposal of know-how as part of disposal of all or part of a trade
  • Section 195 Seller controlled by buyer etc.
  1. Chapter 14 · Disposal and acquisition of know-how
  2. Seller controlled by buyer etc.

Section 195 | Seller controlled by buyer etc.

From legislation.gov.uk

(1)This section applies if a disposal of know-how is by way of sale and—

(a)the seller is a body of persons over which the buyer has control,

(b)the buyer is a body of persons over which the seller has control, or

(c)both the seller and the buyer are bodies of persons and another person has control over both of them.

(2)In such a case—

(a)section 193 does not apply, and

(b)no election may be made under section 194.

(3)For the purposes of this section “body of persons” includes a firm.

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