United Kingdom

Intellectual Property 

Intellectual property is a vital asset in meeting today’s business challenges – it’s what makes a company and its products stand out in the market. In particular, intellectual property (IP) is important to:
 
  • Management as a source of value and as a key tool to achieve competitive advantages;
  • Shareholders and their advisors in assessing the worth of the company;
  • Financiers in assessing borrowing capacity.
  • IP (and more broadly intangible assets) also have a key role to play in groups’ tax strategies.

 

Our IP specialist team is made up of tax professionals from across our International Tax and treasury, Tax Value Chain, Transfer Pricing and Innovation, Reliefs & Incentives teams.  They are experienced in all tax aspects of the IP lifecycle and work closely together to provide timely and relevant advice whether it be to take an overarching holistic view of how to develop a commercially based IP tax strategy or indeed to focus on more discrete aspects.

Text version:

Extracting value from your IP – a tax perspective


Trademarks and design rights promoting brands, patents and know how. These and other forms of intellectual property are key assets that help businesses stand out from the crowd.

What’s more IP and looking at where and how it is held and managed in the business – can also represent an opportunity to realise significant tax savings – particularly with traditional forms of tax planning coming under increased scrutiny from the tax authorities.

Profits attributable to IP can be substantial, so it makes a big difference where the assets are owned and where they are created, developed, managed and maintained. Tax rates and incentives differ country by country, and so the location of a company or group’s IP can make a real impact on the overall tax burden.

In a bid to stimulate innovation, attract business and boost economies a number of governments already have IP-related tax incentives in the form of credits, grants, subsidies or reduced tax rates for both the development and exploitation phase of IP.

 

Businesses often struggle to identify or put an accurate value on their various IP assets. Only through a thorough analysis of IP in the context of the IP lifecycle, allied to an understanding of national tax laws, can management work out the best place to create, own, manage and purchase IP.

 

Almost all organisations possess IP in some format. For some, it’s all about a strong brand created by marketing. For others, it’s related to the customer, through customer relationships, lists & contracts. For others still, it’s in the technology and product design. For these companies, using the UK’s new Patent Box or indeed one of the growing number of other boxes around the world could prove a great way to reduce their tax bill. As could accessing one of the many R&D tax credit regimes available globally.

 

Wherever the IP is to be found, effective planning aligned with commercial strategies can help businesses structure themselves in a tax-efficient way.

Contact us

Jonathan BridgesJonathan Bridges

Partner 

KPMG in the UK

 

020 7694 3846

Email Jonathan

 

Debbie GreenDebbie Green

Partner

KPMG in the UK

 

020 7311 2509

Email Debbie

 

Latest articles & publications