VCM17120 - Qualifying trades: Receiving royalties and licence fees

The receipt of royalties or licence fees can arise in a trade through the exploitation of such assets as trademarks, patent rights, copyright and know-how. However, this exclusion is waived in certain cases (see VCM17310).

Licence fees can also arise in relation to the exploitation of rights over land. The operation of sports centres and leisure facilities are examples of trades that may in some cases involve the receipt of licence fees of this kind. This subject is dealt with in an article in TB54 published in August 2001.