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Provision for annual payments and patent royalties.
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381.—(1) Where any payment to which this section applies is payable out of the profits or gains of a trade consisting partly of exempted trading operations and partly of other trading operations, there shall be treated as paid out of profits or gains brought into charge to tax only the portion of the payment which bears to the total amount thereof the same proportion as the amount of the profits or gains of the trade actually charged to tax bears to the amount of such profits or gains which would have been actually charged to tax if this Chapter had not been enacted.
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(2) This section applies to any payment of interest of money, annuity, or other annual payment charged with tax under Schedule D, or of any royalty or other sum paid in respect of the user of a patent.
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