702-450 Sales of patent rights: general provisions
Charge to tax
Corporation tax is charged under CTA 2009, Pt. 9 on profits from the sale (or exchange) of the whole or part of any patent rights (CTA 2009, s. 912; see also ¶702-350 for the interaction between CTA 2009, Pt. 9 and the intangible fixed assets rules at Pt. 8). The term ‘patent rights’ is defined to mean ‘the right to do or authorise the doing of anything which, but for the right, would be an infringement of a patent’. The tax charge is imposed on a UK-resident company. It is also imposed on a non-resident company if the patent is granted under UK law.