UK: Use of "Patent Box" Regime may Cut Corporate Tax
The UK's Intellectual Property Office (IPO) has published a helpful article on using the 'Patent Box' regime to boost profits. Companies with qualifying intellectual property could benefit rather dramatically from a reduction in the CT rate from 24 to 10%. The program begins in April 2013, though the full benefit isn't reached until 2017.
The Patent Box gives companies an incentive to protect and commercialize their patents. The regime applies a 10% corporation tax rate to profits attributed to patents by 2017, a process that 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 conditions for qualifying, the extent of the relief available, and the process for involvement are outlined by the IPO.