IP Cases & Commentary – Details
6 December 2011
Patent Box - UK Government Response Published
Catherine Mallalieu and Doug Ealey
The UK Government is introducing a preferential regime for profits arising from patents, known as a Patent Box. This will allow companies to apply a 10% corporation tax rate to profits attributed to patents.
The Patent Box consultation was released in June 2011 and on 6 December 2011 the Government published its response to the June 2011 consultation. The document includes a summary of the responses received and also includes details of changes to the proposals which have been made as a result of the consultation, and seeks further views on some specific policy proposals.
The Government has also published draft legislation on the Patent Box, together with draft Explanatory Notes and a Technical Note. Technical consultation on the draft legislation and accompanying documents will close on 10 February 2012.
Notable welcome changes that the Government propose include extending the scheme to patents granted by some other EU states, and lowering the multiplier used to determine excluded routine profits from 15% to 10%.
We will update you with further information shortly.