Non-trade patent royalties- example needed

This topic has 1 reply, 2 voices, and was last updated 5 years ago by Tax Tutor.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
July 13, 2020 at 6:40 am #576665

Holmes1308
Member

sir as a part of Corporation tax(CT) computation, miscellaneous income is also added to arrive at taxable total profits(TTPs). and my study text states the definition of miscellaneous income as “patent royalties receivable in respect of non-trade related patents would be included here”- now i want to understand this statement, through an example.

I’ll be glad if you could provide me with an answer.

thank you.

July 13, 2020 at 12:11 pm #576691

Tax Tutor
Member

A patent that is said in a question to be held by the company as an “investment asset” should be treated in this way and is very unlikely in an exam as it has no impact on the TTP of the company
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.