The intention is to allow companies to apply a 10% corporation tax rate to profits attributed to patents, which will encourage companies to locate the high-value jobs and activity associated with the development, manufacture and exploitation of patents in the UK.
It will also enhance the competitiveness of the UK tax system for high-tech companies that obtain profits from patents.
Building on an initial review in November 2010 (when the Government published a wider Corporate Tax reform consultation, including a review of the taxation of intellectual property) this review provides a detailed explanation of how the Government proposes to implement the Patent Box, and seeks views on the proposed design of the regime.
A Working Group of representatives from businesses has now been established to complement the wider consultation on the Patent Box.
The deadline for responses on the Patent Box Consultation is the 2nd September.
Further Information
Patent Box Consultation