The Chancellor announced today that it will consult with businesses in autumn 2010 to review the taxation of intellectual property, the support research & development (R&D) tax credits provide for innovation and the proposals of the Dyson review.
HM Treasury have confirmed that the “Patent Box”, the previously announced Labour tax initiative introducing a 10% corporation tax rate on income derived from patents, will be consulted upon as part of this wider consultation. However, it is currently still expected to apply to income from patents from April 2013 and only to patents granted after the Finance Bill 2011 is passed.
Sir James Dyson’s report “Ingenious Britain”, published in March 2010, was commissioned by the Conservative Party on how to make the UK the leading high tech exporter in Europe. It clearly supported the Patent Box as well as the refocusing of R&D tax credits on high tech companies, small businesses and new start-ups in order to stimulate a new wave of technology.