How qualifying IP can result in a 10% rate of corporation tax.

The Patent Box is a new tax system (introduced on 1 April 2013) which allows companies who pay UK Corporation Tax to elect to pay a very low 10% rate of corporation tax on profits attributable to qualifying intellectual property (IP). This represents a major tax incentive.

Qualifying IP includes patents granted by the UK Intellectual Property Office (IPO) and the European Patent Office (EPO), as well as supplementary protection certificates, regulatory data protection and plant variety rights. In addition, the Government intends to extend the Patent Box to other EU Member States which have similar examination and patentability criteria as the UK.

The Patent Box applies to existing as well as new IP, and to acquired IP provided the owner has further developed the IP or the product which incorporates it.

Dolleymores has developed expertise in this new area of IP strategy and is able to provide clear focussed advice to any business seeking to take maximum advantage of the tax reductions under the scheme.

We have, for example, worked with clients to identify opportunities and obtain rapid targeted protection to be entered into the Patent Box. We can work in co-operation with existing tax advisors or can work with accountants with whom we have established relationships.

For a discussion on how Dolleymores may assist, please contact a member of our patents team.