Entrepeneurs relief - do I qualify?

[robert162]

I own a plant breeding company as a sole trader. Basically I create new plant varieties. I have been trading for a few years and earning very low return receiving royalties. I don't actually produce anything myself for direct sale.

Now I have the opportunity to sell all my remaining plant genetics (that have not been previously commercialised). The interested party also insists that I will sign an agreement never to breed this type of plant again! I also have to hand over all my records how I have achieved these plants for them to obtain the technical knowledge and also apply for plant patents (plant breeders rights). I may have to continue to give them technical expertise for a set period of time.
If I agree to this sale I effectively will have to cease my business. The royalties that I currently receive will be unaffected, but this is slowly coming to an end anyway.

My question is whether I will be liable to income tax or CGT and whether the entrepeneurs relief rate might/would apply.
My accountant thinks it's CGT, but two tax advisers are uncertain. One says income tax and the other CGT. I should appreciate any thoughts you may have on the matter.

Thanks in advance.

[mullet]

Are you just selling your stock, or are you disposing of your knowhow and the right to grow/develop do whatever you do. If the latter, then it sounds like a capital disposal to me and entrepreneurs' relief will apply if all qualifying conditions are met.

[robert162]

The word stock does not accurately describe it. I am selling my new plant creations that have never been commercialised. However, they also require the technical know how behind the creations otherwise they cannot exploit anything. In addition they wish to prevent me from ever working in this field again, because they are scared I become a competitor again. I will never be allowed to breed this type of plant ever again.
The more I read the more confused I become.