Authors and literary profits: royalties to person other than author
Copyright royalties received by an individual other than the author, composer etc (unless they form part of the receipts of a trade or represent post-cessation receipts - see BIM50740), are chargeable to Income Tax as miscellaneous income. A deduction should be given, where appropriate, for agents’ commission.
Copyright royalties received by a company are dealt with under the intangible assets regime. See CIRD10000 onwards.
Where it is claimed that royalties are not chargeable because of the decision in Hume v Asquith  45TC251, the case should be referred to Business Profits (Technical).