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Section 261A: Disposal of know-how as part of disposal of all or part of a trade

Taxation of Chargeable Gains Act 1992 · 1992 c. 12View on legislation.gov.uk

Part VII: Other property, businesses, investments etc.

This section applies if—

a person carrying on a trade receives consideration for the disposal of know-how which has been used in the trade, and
the know-how is disposed of as part of the disposal of all or part of the trade.

If, as a result of section 194 of ITTOIA 2005, the consideration is treated for income tax purposes as—

a capital receipt for goodwill (in relation to the person disposing of the know-how), or
a capital payment for goodwill (in relation to the person acquiring the know-how),

the consideration is treated for capital gains tax purposes in the same way.

This section has effect as if it were contained in Chapter 14 of Part 2 of ITTOIA 2005.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.