Taxes Consolidation Act 1997 section 762

Application of Chapter 4 of Part 9

Section 762 applies the general capital allowance rules in Chapter 4 of Part 9 to patent rights capital allowances, with certain modifications to accommodate the specific nature of patent transactions.

• The general supplementary capital allowance provisions in Chapter 4 of Part 9 apply to patent rights allowances, including the treatment of allowances given by discharge or repayment of tax.
• Where patent rights are sold between connected parties, a joint election may substitute the tax written-down value for the open market price, deferring any balancing charge from the seller to the buyer.
• The joint election is generally unavailable where a party to the sale is non-resident, unless the non-resident trades in the State through a branch or agency.
• Capital sums received for the sale of patent rights that may be charged as income under section 757 are not excluded from the definition of capital sums for Part 9 purposes.