Part 5

Miscellaneous income
Chapter 2

Receipts from intellectual property

Disposals of know-how

Income charged under section 583
585
1
Tax is charged under section 583 on the full amount of the profits arising in the tax year.
2
The profits charged under section 583 are—
a
the amount of the consideration, less
b
any expenditure incurred by the recipient wholly and exclusively in the acquisition or disposal of the know-how.
3
Such expenditure may not be taken into account more than once, whether under this section or otherwise.
4
This section needs to be read with section 603 (contributions to expenditure).