108(1)Amend section 527 (spreading of royalties over several years) as follows.U.K.
(2)For subsection (1) substitute—
“(1)Where—
(a)a royalty or other sum is paid to a company in respect of the user of a patent,
(b)the user extended over a period of six complete years or more, and
(c)the payment is one from which a sum representing income tax must be deducted under section 903 of ITA 2007,
the company may on the making of a claim require that the corporation tax payable by it by reason of the receipt of that sum shall be reduced so as not to exceed the total amount of corporation tax which would have been payable by it if that royalty or sum had been paid in six equal instalments at yearly intervals, the last of which was paid on the date on which the payment was in fact made.”
(3)Omit subsection (4).