As part of its programme to deliver a more competitive corporate tax regime and to support innovation in the UK, the Government has confirmed its previously stated intention to introduce the Patent Box, which is a 10% corporation tax regime for net profits derived from patents and patented products. The regime is still intended to come into effect from April 2013.
The first consultation on this regime closed in February this year. A further consultation document will be issued in May 2011. The details of this regime will be keenly awaited by those in high-tech innovative industries as a number of key issues relating to its design are yet to be finalised by the Government.
We submitted a response to the last consultation having sought representations from a wide range of interested parties. Click here: www.olswang.com/pdfs/patentbox_pharma_mar11.pdf (Life Sciences/Pharma) or here: www.olswang.com/pdfs/patentbox_tech_mar11.pdf (Technology) for a summaries of Olswang’s response.