What surprises lurk in patent box?
The government’s proposal to introduce a reduced 10% tax rate for profits derived from patents is a laudable attempt to encourage the UK’s knowledge industries that finds itself caught by the usual paradox between simplicity and anti-avoidance.
As detailed by the Corporation Tax whitepaper released as part of Chancellor George Osborne’s autumn statement on Tuesday (30 Nov), the so-called patent box will introduce a preferential regime for profits arising from patents. The Patent Box will enhance the competitiveness of the UK for high-tech companies, the Treasury said.
The idea was first formulated under the previous government. Following a final round of consultation between now and 22 February, causes will be drafted for the 2012 Finance Bill 2012 to bring the scheme into force from April 2013.
The scheme will be voluntary, and in a concession set out in the white paper, patents commercialised after 29 November 2010 will qualify for inclusion in the Patent Box.