Overview
1596.This Chapter introduces know-how allowances. They are given to traders who incur qualifying expenditure. Chapter 2 defines “qualifying expenditure” and contains the condition that the person must be a trader. This Chapter defines “know-how” and treats it as property.
1597.Section 452 requires qualifying expenditure on acquiring know-how in order for allowances to be given and defines “know-how”.
1598.Section 453 treats know-how as property.
Section 452: Know-how allowances
1599.This section is based on sections 532(1) and 533(7) of ICTA and section 161(2) of CAA 1990. It explains that allowances are only available to persons who incur qualifying expenditure on acquiring know-how. The section defines “know-how”.
1600.Subsection (3)(a) omits the examples of geothermal energy in section 161(2) of CAA 1990. They are not needed. See Note 46 in Annex 2.
Section 453: Know-how as property
1601.This section is based on section 532(5)(a) of ICTA. It treats know-how as property for this Act. This allows general provisions of this Act to apply to know-how. There would otherwise have to be specific provisions saying that this or that section applies to know-how as it does to property with the necessary modifications. An example of these general provisions is the provision dealing with apportionment of consideration on sales of property.
