30 November 2010

UK Coalition Confirms Introduction of 'Patent Box'

UK Coalition Confirms Introduction of 'Patent Box'

In his Autumn Statement of 29 November 2010, the Chancellor of the Exchequer confirmed that the coalition government are to introduce a 'Patent Box'. According to the Chancellor,

“So to encourage high-tech businesses to invest in the UK and create high-value jobs here, we can confirm that we will introduce from April 2013 a lower 10 per cent corporate tax rate on profits from newly commercialised patents”

The specific details of the initiative have yet to be outlined and a period of consultation is planned during which the policy will be finalised. However, it certainly seems that this announcement is positive for those UK companies who derive a significant proportion of their profits from patented inventions.

As well as encouraging existing UK companies to invest more in innovative products, it is understood that the coalition are hoping that the change will attract more innovator companies to the UK in order to boost corporate tax receipts.

This policy is just one of a number of recent changes (the introduction of the Green Channel at the UK IPO is another recent change) which seek to improve the business landscape for those using the patent system.

Further updates will appear on this website as the specific policy details are finalised.