PART 1Income Tax, Corporation Tax and Capital Gains Tax

CHAPTER 2Income tax: general

Exemptions and reliefs

15Abolition of tax relief for patent royalties

1

Chapter 4 of Part 8 of ITA 2007 (reliefs: annual payments and patent royalties) is amended in accordance with subsections (2) and (3).

2

In section 448 (relief for individuals), in subsection (1)(b) omit “or 903(5)” and “and patent royalties”.

3

In section 449 (relief for other persons), in subsection (1)(b) omit “or 903(6)” and “and patent royalties”.

4

Accordingly, that Act is amended as follows—

a

in section 2 (overview of Act), in subsection (8)(c) omit “and patent royalties”,

b

in section 24 (reliefs deductible at Step 2), in subsection (1)(b) omit “and patent royalties”, and

c

in the heading for Chapter 4 of Part 8 of that Act omit “AND PATENT ROYALTIES”.

5

The amendments made by this section have effect in relation to payments made on or after 5 December 2012.