Part 17

Partnerships

Miscellaneous

Sale of patent rights: effect of later cessation of trade
1272
1
This section applies if—
a
a person sells the whole or part of any patent rights in carrying on a trade,
b
by virtue of section 1271 amounts are chargeable to corporation tax under section 912 as profits of one or more companies for the time being carrying on the trade in partnership,
c
a partner which is a company ceases to carry on the trade after that, and
d
no company which carried on the trade immediately before the cessation continues to carry on the trade in partnership immediately after the cessation.
2
Any amounts mentioned in subsection (1)(b) which would have been chargeable in any accounting period of a company later than that in which the cessation occurred are charged in the accounting period of the company in which the cessation occurred.
Pt. 17 applied (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 291