CIRD220160 - Patent Box: relevant IP profits: relevant IP income: overview
CTA10/S357BH
Relevant IP income is the income derived from the exploitation of qualifying IP rights as defined in S357BH. S357BH (12) ensures that a company is regarded as holding a qualifying IP right if it holds an exclusive licence of the right.
In many cases 바카라 사이트˜RIPI바카라 사이트™ and 바카라 사이트˜relevant IP income바카라 사이트™ will be synonymous. However RIPI is defined in 357BH(1) and in order for relevant IP income to be RIPI it must be included in the heads of income of the trade. RIPI could never include finance income which is specifically excluded by s357BG. RIPI cannot include any income not taken into account in computing trading profits.
The legislation splits the exploitation of IP rights into five different heads:
| CIRD220170 | Head 1 - sales income |
|---|---|
| CIRD220200 | Head 2 - licence fees |
| CIRD220220 | Head 3 - proceeds of sale |
| CIRD220230 | Head 4 - damages for infringement |
| CIRD220240 | Head 5 - other compensation |
If a company derives some of its income from the exploitation of the patented invention but the income does not fall into any of the five heads, it may be able to deem some of that income to be RIPI as a 바카라 사이트˜notional royalty바카라 사이트™ for the patented item (CIRD220250).