If I sell a limited right to license my software to a 3rd party, is it a capital gain for tax purposes?

This could be quite a complex issue. The answer may be different it you owned the IP personally or if it isowned by a limited company. This is because IP is "intangible" property. There are different rules for the taxation of intangible property acquired by companies after 2002.

If you owned it as an individual then I think the position is much more straightforward.

You are licencing the IP for profit. That means the proceeds will be considered as income and taxed accordingly.

It would only be "capital" if you acquired the IP without any intention to trade it or sell it on. Then if you later disposed of it any gain is a Capital Gain.

you may owe capital tax at 15% on the one hundred,000 earnings once you sell it in spite of while she passes away. a much extra powerful plan is for her to maintain the call in her call and in simple terms upload you by using fact the beneficiary at her dying. it is named flow On dying or TOD. That way you nevertheless get the stepped up value foundation to her dying fee to compute your earnings which may well be 0 in case you offered it quickly after dying.