Treat a receipt from a disposal of know-how which is not brought to account as a disposal value, and:
nor
nor
as a profit or gain chargeable under Case VI of Schedule D for a
company or as profits assessable to income tax for an individual.
The sort of cases where this applies are cases like the
situation where know-how built up by the trading members of a group
of companies is exploited by a non-trading holding company.
Where the disposal of know-how gives rise to a Case VI charge
or is assessable to income tax under ITTOIA/S583 deduct any
expenditure incurred by that person wholly and exclusively in the
acquisition or disposal of the know-how in arriving at the amount
chargeable Case VI. This does not apply if a deduction can be made
for the expenditure under some other provision.
Where the taxpayer is an individual who devised the know-how,
whether alone or jointly with any other person, the income should
be treated as earned income.
