Finance Act 1996

15 (1) Section 524 of the Taxes Act 1988 (taxation of receipts from sale of patent rights) shall be amended in accordance with the following provisions of this paragraph.

(2) In subsection (2) (election to be made by notice served on the inspector not later than two years after end of chargeable period in which sum received)—

(a) for “the inspector not later than two years after the end of the chargeable period in which the sum was received” there shall be substituted “an officer of the Board within the period specified in subsection (2A) below”; and

(b) for “that chargeable period” there shall be substituted “the chargeable period in which it was received”.

(3) After that subsection there shall be inserted—

“(2A) The period mentioned in subsection (2) above is—

(a) in the case of an election for the purposes of income tax, the period ending with the first anniversary of the 31st January next following the year of assessment in which the sum was received;

(b) in the case of an election for the purposes of corporation tax, the period of two years beginning at the end of the accounting period in which the sum was received.”

(4) In subsection (4) (election to be made not later than two years after the end of the year of assessment in which the sum is paid) for “not later than two years after the end of” there shall be substituted “on or before the first anniversary of the 31st January next following”.