CA72400 - Know-how: Receipts: Trading receipt treatment
ICTA88/S531 (1)
Sometimes the normal rules for Schedule D do not treat a receipt
for know-how as a trading receipt. If they do not a payment
received by a trader for know-how which is not a disposal value or
already chargeable as a revenue receipt is treated as a trading
receipt.
This means that consideration received for the disposal of
know-how in a continuing trade is either:
- treated as a revenue receipt under general law, or
- brought to account as a disposal value in the capital allowance computation, or
- if neither (a) nor (b) applies treated as a trading receipt.
