Income Tax (Trading and Other Income) Act 2005 section 583

Charge to tax on income from disposals of know-how

Section 583 imposes an income tax charge on profits arising when a person receives consideration for disposing of know-how or for giving or fulfilling a restrictive undertaking connected with such a disposal.

• Income tax is charged on profits from the disposal of know-how or from giving or fulfilling a restrictive undertaking connected with such a disposal
• Know-how means industrial information or techniques that assist in manufacturing, processing, mineral extraction, or agricultural, forestry and fishing operations
• The charge applies regardless of whether any restrictive undertaking is legally enforceable
• The charge is subject to specific exceptions set out in section 584