December 2009
In the UK Treasury’s pre-budget report, the Chancellor announced a new patent-related initiative. This welcome proposal is to apply a reduced 10% rate of corporation tax to income from patents – a so-called “Patent Box”. The main rate of UK corporation tax is currently around 30%.
The Government intends the proposals to form part of the Finance Bill 2011. If passed, this bill will reduce the tax rate applied to patents granted after the legislation enters into force. The Government envisages that the legislation will apply from April 2013.
We will be maintaining a close watch on developments and we will provide an update when we have further news.