Patent Box - A Gift from the Treasury?
March 29, 2012
In recent years, companies have been choosing to move their patents offshore and this has cost the UK jobs in development, manufacturing and exploitation of patented technologies. The Government has announced that it wants to create the most competitive tax system in the G20 to counter this movement and plans to introduce a ‘Patent Box’ amongst other measures.
What is the Patent Box?
The aim of the Patent Box is to provide an incentive for companies in the UK to retain and commercialise existing patents and to develop new innovative patented products. The Patent Box should also encourage companies to locate jobs which are associated with the development, manufacture and exploitation of patents in the UK. Where income falls within the Patent Box, corporation tax will be reduced to 10% for worldwide profits derived from relevant Intellectual Property. The Patent Box is expected to be part of the Finance Bill of 2012 and to be legislation in April 2013.
What Intellectual Property is covered by the Patent Box?
The Government has stated that they are focusing on Intellectual Property that has a strong link to high-tech R&D and manufacturing activity. Currently, British patents and European patents will qualify for the Patent Box. Additionally, the Patent Box is expected to cover regulatory data protection, plant variety rights and supplementary protection certificates.
Who will benefit from the Patent Box?
Companies who pay UK Corporation Tax and are: &bull The proprietor of a patent &bull An exclusive licensee of a patent &bull A company that has acquired the patent &bull A company who has been involved in a partnership, joint venture or a cost sharing arrangement with the proprietor of the Patent.
What should we do to take advantage of the Patent Box?
You should strongly consider filing patent applications for your company’s inventions and especially for those inventions that are likely to be implemented in your future products and processes. Please contact Lee Thould [email protected] if you would like to learn more about the Patent Box scheme and how it may benefit your company.
Swindell & Pearson has been helping businesses and individuals protect and defend their ideas, innovations and brands for over 130 years. With its head office in Derby, the firm also has offices in Stoke, Wolverhampton, Stafford, Sheffield and Burton. To find out how Swindell & Pearson can help you with any intellectual property requirements please get in touch via [email protected] or by telephone on 01332 367 051.