§ During the Finance Bill debates last year, my right hon. Friend the Chief Secretary promised that the tax treatment of purchases and sales of know-how would be reviewed in consultation with industry. As a result, we have come to the conclusion that, while in practice the existing law as interpreted by the courts works well enough in the generality of cases, it ought to be clarified and certain minor defects remedied so that, in negotiating for know-how, both seller and purchaser know where they stand. In general, receipts from the sale of know-how will be treated as income, except where it is sold as an element in the disposal of a business, when the charge will be to Capital Gains Tax. I propose to introduce a new capital allowance giving the purchaser relief over six years in those cases where he cannot get relief under the present law.