Author Archive

R&D tax relief relaxation

December 9, 2009

As has already been noted on this site, the condition that companies can claim research & development (R&D) tax relief on qualifying expenditure deriving only from intellectual property that they own has been removed for companies that are small and medium sized enterprises.

This change is welcomed but it is disappointing that the Government has not taken the opportunity to further widen the scope of eligible expenditure on which relief can be claimed.

More news on the “patent box”

December 9, 2009

As mentioned already, Alistair Darling announced the 10% rate of corporation tax on income from the exploitation of patents.  What he did not say (but which is in the press releases) is that it is currently proposed that this reduced rate will not apply to income from patents until April 2013.   The Government have said they will consult with business with the aim of introducing legislation in the Finance Bill 2011, with the new regime applying only to patents granted after the legislation is passed

The Government has in place various initiatives to speed up the granting of patents, but businesses may now have a good reason to slow the process down!

“Patent box” corporation tax rate

December 9, 2009

In a bid to increase investment in biosciences in the UK, the Chancellor has announced a 10% corporation tax rate on income from the exploitation of patents in the UK.  This is good news for the UK, enabling it to compete with other jurisdictions that have similar regimes.  However, it appears from his budget speech that it is limited to patents only, rather than all IP, so it does not go far enough in the bid to compete.  We await to see the detail in the Government Press Releases.