Corporation Tax Act 2009 section 923

Sums paid for Crown use etc. treated as paid under licence

Section 923 ensures that when a patented invention is used by or on behalf of the Crown or a foreign government, any payments made for that use are treated as if they were made under a licence, bringing them within the tax rules that apply to patent income.

• Applies when a patented invention is used by or for the service of the Crown under sections 55 to 59 of the Patents Act 1977, or by a foreign government under equivalent laws
• The use of the patent is treated for tax purposes as if it took place under a licence
• Any sums paid in respect of that use are likewise treated as if paid under a licence
• The word "use" is intended broadly and covers activities such as making and selling the patented invention