BIM50725 - Literary profits: royalties to person other than author

Copyright royalties received by a person other than the author, composer etc (unless they form part of the receipts of a trade assessable under Case I or represent post-cessation receipts - see BIM50740), are liable as unearned income under-

• Case III, if they are derived from a United Kingdom copyright (or, exceptionally, Case VI if they are not pure income); or
• Case V, if they are derived from a foreign copyright.

An allowance should be given, where appropriate, for agents' commission.

As regards copyright royalties received by persons abroad, see IM4000 onwards

Where it is claimed that the person in receipt of the royalties is not liable because of the decision in Hume v Asquith [1968] 45TC251, the case should be referred to Business Tax (Technical).