The UK Government’s new Patent Box regime will come into effect from 1 April 2013. It presents companies that are holding patents, and using them in their business, with the opportunity to significantly reduce their tax burden.
Although your company may not currently hold any patents, don’t assume that Patent Box won’t apply to you. You may have products or processes, for which a patent application could be made. The tax benefits of the new scheme are attractive and make consideration of such an application well worthwhile. The patent registration process can take at least 12 months so it is important for companies to act now.
The regime will be phased in gradually from 1 April 2013 with a 10% rate applying to all qualifying profits from 1 April 2017 onwards, and will apply to worldwide income earned by UK companies from UK and European registered patents.
The scheme mirrors others already in place in Europe, and is intended to encourage companies to locate high value jobs and activity associated with development, manufacture and exploitation of UK patents.
Patent Box presents many companies with the opportunity to significantly reduce their UK corporation tax bill. Companies should take action now to understand how they can benefit from the regime and what business changes might be advantageous prior to the rules coming into effect.
Ward Williams are a leading firm of Chartered Accountants specialising in Patent Box and Research and Development claims. For more information please contact us on 01932 830 664 or email sarah@wardwilliams.co.uk.
Although your company may not currently hold any patents, don’t assume that Patent Box won’t apply to you. You may have products or processes, for which a patent application could be made. The tax benefits of the new scheme are attractive and make consideration of such an application well worthwhile. The patent registration process can take at least 12 months so it is important for companies to act now.
The regime will be phased in gradually from 1 April 2013 with a 10% rate applying to all qualifying profits from 1 April 2017 onwards, and will apply to worldwide income earned by UK companies from UK and European registered patents.
The scheme mirrors others already in place in Europe, and is intended to encourage companies to locate high value jobs and activity associated with development, manufacture and exploitation of UK patents.
Patent Box presents many companies with the opportunity to significantly reduce their UK corporation tax bill. Companies should take action now to understand how they can benefit from the regime and what business changes might be advantageous prior to the rules coming into effect.
Ward Williams are a leading firm of Chartered Accountants specialising in Patent Box and Research and Development claims. For more information please contact us on 01932 830 664 or email sarah@wardwilliams.co.uk.
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