Overview

Taxation of intellectual property is back in the spotlight with the publication of the Government's proposals which detail how the 10% tax rate, or patent box, will work. This briefing from Wragge & Co looks at why overall there is good news for innovative businesses subject to UK corporation tax.
Under its "Plan for Growth" the Government committed itself to creating the most competitive tax system in the G20. Across a range of policy areas, it is giving high priority to encouraging innovation which it sees as a key generator of growth in the UK economy. This includes a programme of corporate tax reforms specifically relevant to intellectual property, of which the Patent Box is one. This briefing gives an overview of the Patent Box and how it will work, covering what patents qualify, what incomes qualify and how the amount to which the 10% rate will be applied be calculated.