Section 757 of the Principal Act is amended -

(a) by the insertion of the following subsection after subsection (4):

"(4A)

(a) This subsection shall apply where -

(i) there is a sale of patent rights that constitutes a disposal for the purposes of the Capital Gains Tax Acts, and

(ii) the person selling the patent rights would be chargeable to capital gains tax in respect of that sale but for the net proceeds of the sale being excluded from the computation of the gain accruing on that disposal by virtue of section 551.

(b) Where, but for the application of this section, section 617 would apply to a sale referred to in paragraph (a), then -

(i) section 617 and Chapter 1 of Part 20 and Chapter 2 of Part 9, in so far as those Chapters relate to section 617, shall apply for the purposes of a charge to tax under this section as those provisions apply for the purposes of the Capital Gains Tax Acts, with any necessary modifications, and

(ii) in applying section 617 to a sale referred to in paragraph (a), references in this section to the capital sum received for the sale of patent rights for the purposes of this section shall be read as references to the consideration referred to in section 617(1).",

and