The Patent Box regime is a new form of corporate tax relief that came into force in April 2013. In effect, the ‘Patent Box’ regime will reduce the Corporation Tax rate on profits attributed to patented products to just 10%.
The reduction in Corporation Tax for patent income is designed to make the UK’s tax system more competitive and appealing as a place for business innovation and growth. The ‘Patent Box’ regime gives companies a new incentive to protect their innovations and commercialise their patents.
All UK companies that develop new products should consider whether the Patent Box could be of benefit to them. For UK Corporation Tax payers, the introduction of the Patent Box means that they will derive a direct financial benefit from owning UK patents on products that contribute to their tax liability.
Our patent attorneys at Adamson Jones work with clients’ accountants to ensure that the benefits of this new tax break are maximised, whilst maintaining protection over their current patents.