Book update: non-trade patent royalties income tax relief abolished (paras 5.35-5.40)

Yes, I know the book hasn’t been published yet – any day now, I gather. Nevertheless, the Autumn Statement has poked a hole in it already (such is the dubious pleasure of writing on tax).

As of 5th December 2012, s448 ITA 2007 has been modified so that it no longer applies to payments of non-trade patent royalties (ie: those where tax is withheld under s903 ITA 2007). As a result, there is no longer any income tax relief available for payments of non-trade patent royalties by individuals.

For more details, see the draft legislation and explanatory notes (external PDF).

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