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Legislation
Income Tax (Trading and Other Income) Act 2005

Crossheading Sales of patent rights

  • Section 587 Charge to tax on income from sales of patent rights
  • Section 588 Income charged under section 587
  • Section 589 Person liable for tax under section 587
  • Section 590 UK resident sellers: spreading rules
  • Section 591 Non-UK resident sellers: election for spreading
  • Section 592 Further provision about elections for spreading: instalments
  • Section 593 Death of seller
  • Section 594 Winding up of a body corporate
  • Section 595 Deduction of tax from payments to non-UK residents
  • Section 596 Adjustments where tax has been deducted
  • Section 597 Licences connected with patents
  • Section 598 Rights to acquire future patent rights
  • Section 599 Sums paid for Crown use etc. treated as paid under licence
  1. Sales of patent rights
  2. Licences connected with patents

Section 597 | Licences connected with patents

From legislation.gov.uk

(1)The acquisition of a licence in respect of a patent is treated for the purposes of sections 587 to 596 as a purchase of patent rights.

(2)The grant of a licence in respect of a patent is treated for the purposes of sections 587 to 596 as a sale of part of patent rights.

(3)But the grant by a person entitled to patent rights of an exclusive licence is treated for the purposes of sections 587 to 596 as a sale of the whole of those rights.

(4)In subsection (3) “exclusive licence” means a licence to exercise the rights to the exclusion of the grantor and all other persons for the period remaining until the rights come to an end.

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