The Government has confirmed in the Budget that a reduced 10% rate of corporation tax for profits arising from patents will be effective from 1 April 2013 but it will continue to consult on the detail of this measure.
As previously reported by wwtaxclub, companies with income from patents commercialised after 29 November 2010 cam benefit. Industries in pharmaceutical, technology, manufacturing, energy and utilities, telecoms, aerospace, defence, consumer and media businesses should benefit.
A further consultation document will be published in May 2011, with legislation proposed for Finance Bill 2012. The reduced rate of corporation tax will apply to profits arising from patents from 1 April 2013.
We continue to be positive on this. Should be an opportunity for these businesses and it is not too soon to look at discussing what areas of your business might be able to take advantage of this regime.
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