Q. If my company buys the rights to the intellectual property I create in the form of blogs, websites and online presentations, is that treated as the sale of a capital asset in my hands subject to capital gains tax? If so, can I sell such intellectual property every year for £10,000, so the gain is covered by my annual exemption and I pay no tax?
A. There are two reasons why your plan won’t work:
i. You and your company are connected parties. Any transactions between you and the company must be valued at open market value. Is your blog etc. really worth £10,000 on the open market?
ii. The Taxman’s view is that transactions involving copyright will generally fall to be taxed as income receipts, not capital gains.
If you would like any further information, please do not hesitate to contact Southside Accountants Wimbledon & London.