Part 9Intellectual property: know-how and patents
Chapter 3Sales of patent rights
Miscellaneous
919Deduction of tax from payments to non-UK resident companies
1
This section applies if a non-UK resident company is liable for tax under section 912 on profits from the sale of the whole or part of any patent rights.
2
The rules in section 913 allowing the capital cost (if any) of the rights sold to be deducted in calculating the profits from the sale do not affect the amount of income tax which is to be deducted under section 910 of ITA 2007.
3
No election made by the company under section 916(3) or 917(3) (election to spread charge to tax) in relation to the proceeds of sale or any instalment affects the amount of income tax which is to be deducted under section 910 of ITA 2007.
920Adjustments where tax has been deducted
Where any sum has been deducted from a payment under section 910 of ITA 2007, any adjustment necessary—
a
because of section 919(2), or
b
because of an election under section 916(3) or 917(3),
must be made by way of repayment of tax.
921Licences connected with patents
1
The acquisition of a licence in respect of a patent is treated for the purposes of this Chapter as a purchase of patent rights.
2
The grant of a licence in respect of a patent is treated for the purposes of this Chapter as a sale of part of patent rights.
3
But the grant by a person entitled to patent rights of an exclusive licence is treated for the purposes of this Chapter as a sale of the whole of those rights.
4
In subsection (3) “exclusive licence” means a licence to exercise the rights to the exclusion of the grantor and all other persons for the period remaining until the rights come to an end.
922Rights to acquire future patent rights
1
If a sum is paid to obtain a right to acquire future patent rights, then for the purposes of this Chapter—
a
the payer is treated as purchasing patent rights for that sum, and
b
the recipient is treated as selling patent rights for that sum.
2
If a person—
a
pays a sum to obtain a right to acquire future patent rights, and
b
subsequently acquires those rights,
the expenditure is to be treated for the purposes of this Chapter as having been expenditure on the purchase of those rights.
3
In this section “a right to acquire future patent rights” means a right to acquire in the future patent rights relating to an invention in respect of which the patent has not yet been granted.
923Sums paid for Crown use etc treated as paid under licence
1
This section applies if an invention which is the subject of a patent is used by or for the service of—
a
the Crown under sections 55 to 59 of the Patents Act 1977 (c. 37), or
b
the government of a country outside the United Kingdom under corresponding provisions of the law of that country.
2
The use is treated for the purposes of this Chapter as having taken place under licence.
3
Sums paid in respect of the use are treated for the purposes of this Chapter as having been paid under a licence.