Briefing

The "Patent Box" – putting the UK on the map

Posted by : Peter Wienand | Date posted : 28/05/2012

The "Patent Box" tax regime, contained in the Finance Bill 2012, is part of the Government’s broader aim to make the UK’s tax system more competitive and appealing as a place of business innovation and growth. The regime applies a 10% corporation tax rate to profits attributed to patents by 2017.

The reduction in corporation tax will occur in stages. In April 2013, 60% of the benefit will be phased in, increasing by 10% per tax year until April 2017, at which point the fully reduced 10% rate will be effective. The new regime is much more far-reaching than it first appears, giving companies a new incentive to protect and commercialise their patents.

If you require further information on anything covered in this briefing please contact Peter Wienand (peter.wienand@farrer.co.uk) or your usual contact at the firm on 020 3375 7000.