Company urges UK Chancellor not to water down Patent Box

Looking ahead to next week’s Budget statement, Withers & Rogers is urging the UK Chancellor not to do anything to water down the Patent Box, and ensure that research and development-led businesses in the UK feel the benefit of the tax incentive as soon as possible.

Under the current legislative framework for the incoming Patent Box, any profits from inventions that are protected by a UK patent will be taxable at a significantly lower rate of Corporation Tax — just 10 per cent.

However, in the coming tax year it will only apply to 60 per cent of the profits from the patented invention, rising to the full 100 per cent in 2017.

According to Withers & Rogers, there could be scope for the Chancellor to extend the benefit by making it applicable to all of the eligible profits from the scheduled date of introduction, which is 1 April 2013.