Part 5

Miscellaneous income
Chapter 2

Receipts from intellectual property

Sales of patent rights

Adjustments where tax has been deducted
596
1
Where any sum has been deducted from a payment by virtue of section 595(2), any adjustment necessary—
a
because of section 595(2), or
b
because of an election under section 591(2) or 592(2),
must be made by way of repayment of tax.
2
Adjustments necessary to give effect to an election under section 591(2) or 592(2) must be made year by year, treating one-sixth of the sum deducted from the proceeds of sale or instalment as income tax paid for each of the 6 years.
3
No repayment is to be made of any tax treated under subsection (2) as income tax paid for a particular year unless and until it is ascertained that the income tax ultimately falling to be paid for that year is less than the amount which was paid for that year.