tax on a bonus vs capital gains

amd33

Hi,
Not sure if anyone is an expert in tax or could possibly help....

My employer will be selling something on my behalf (some intellectual property of software - there's no disagreement about who owns the ip, I'm comfortable with all of that...)

However I will be in line for a one off payment as part of this sale and my question is around how much tax I should be looking to pay on this?
My paye earnings are on the brink of the 40% threshold anyway, so anything above this will take me into the higher rate of tax, but will this one off bonus have to be taxed this way?
Is there a way I can get the money paid directly to myself and then pay capital gains tax?
Or am I just being a bit silly even asking this.

Any help you can offer would be great.
Thanks

Savvy_Sue

I think you're being a bit silly even asking it!

However, if you made additional pension payments you could reduce your tax liability.

Also do you have children? That would be another reason to 'adjust' your income.

Dead_keen

What do you mean by "on my behalf"?

getmore4less

It is a good question(most people would not come across this often).

How should IP sales be taxed.

I would have a good search around on valuing IP and taxation of such an asset on disposal.

Intangible assets seems to be the category IP comes under.

The company selling it( and paying you is probably not relevant to it's taxable status.

It might even be depending on the valuation be a bit of both(sold for more than its worth), also if any CGT is payable you will need the base cost establishing.

Best I could find was an old HMRC item on selling patents that suggest may be income but taxable over 6 years which may be of some use.

this seems to back it up
http://www.accountingweb.co.uk/anyanswers/tax-treatment-patents-0

xylophone

Do you mean that your employer is acting as your agent?

Savvy_Sue

I must admit I read the first post as meaning that the OP was being given a bonus, rather than the employer selling something on his behalf. So I guess a bit of clarity might be useful.

sidefx

Savvy_Sue wrote: »

I must admit I read the first post as meaning that the OP was being given a bonus, rather than the employer selling something on his behalf. So I guess a bit of clarity might be useful.

I read it as the employer was selling something on the OPs behalf!