Tax-free income from patent royalties is available to individuals who themselves participate in the development of the invention.
Dividends from qualifying patent income are tax exempt when paid on 'eligible shares' or to an individual involved in the development process of the invention.
The amount of tax-free royalty income is restricted to the amount which would have been received if the parties were dealing at arms length. Certain conditions must be met for patent distributions to qualify for tax relief.
If you require more information please consult your tax advisor or email us at tax@fixmytax.com. |
