What is the Patent Box?
The UK Government’s new Patent Box regime is intended to come into effect from 1 April 2013. The regime has been legislated in Finance Act 2012.
The regime is being introduced with a view to encouraging companies to locate high-value jobs and activity associated with the development, manufacture and exploitation of patents in the UK. It presents companies that are holding patents and using them in their business, the opportunity to significantly reduce their UK tax burden.
What does this mean for you?
With a tax rate of 10% Patent Box has the potential to deliver significant ETR and cash tax savings. The mechanics of the rules also enable companies to make more economic use of losses and other reliefs.
Action should be taken by companies now to understand how to benefit from the regime and what business change might be advantageous prior to the rules coming into effect. Some questions companies should be considering include:
- Is this relevant to your business? If you hold patent interests in UK or EPO patents it will be
- Can you benefit? Yes where your sales revenues are supported by your patent interests
- How much might you benefit by?
- Will you be ready?
How can we help?
KPMG have an experienced multi-disciplinary team who can help assess the potential benefits of the Patent Box Regime. In addition, members of our team have worked closely with HMT and HMRC as the proposals have been developed.
Find out more about how we can help you by downloading a copy of our publication.